Vietnam PET Market Showed Signs Of Recovery As Crude Oil Prices Rebounded
- PET prices supported by movements in crude oil and monomer prices
- Demand has started to recover
- Seasonal slowdown overshadows outlook
SSESSMENTS.COM’s data showed that Vietnam PET Market is showing signs of recovery as crude oil prices rebounded. After reaching its bottom level, Vietnam’s domestic PET prices have gained some strength, buoyed by rising crude oil and monomer prices. Local PET Bottle prices are recovering from recent slumps as crude oil prices have been relentlessly headed higher amid signs of improving demand, driving up prices of PTA and MEG. Most local PET Bottle offers have bounced back to above VND19,000,000/ton-level. This week, some buyers received local PET Bottle offers via a trader at VND19,400,00/ton ($828/ton) on cash, FD Ho Chi Minh basis and including 10% VAT, or at VND400,000/ton ($17/ton) higher than the offer level available last week. For purchasing volume of 63 tons, a converter managed to secure a deal for the same origin cargoes at VND400,000/ton ($17/ton) lower than the initial offer level in the previous week, or at VND18,400,000/ton ($785/ton) on 15 days credit term, FD Ho Chi Minh basis and including 10% VAT. From the import market, most import offers are ranging between $700-750/ton on LC at sight, CIF Vietnam Main Port basis. Despite a rebound in crude oil and monomer prices, a Vietnamese PET distributor rolled over import offers for China, Indonesia, and Thailand origin cargoes as compared to last week’s level.
Despite the external risks, Vietnam has gradually begun lifting strict quarantine measures to revive economic activities from late April, as there have been only 324 total confirmed cases reported in the country and no fatalities so far. Most low-risk businesses and educational institutions were given the green light to resume operations under physical distancing protocols. Market sentiment and domestic demand started to turn around from last week as crude oil prices have been rallying significantly. So far, buyers are willing to purchase large volumes of materials on the back of concern on further price increase following firmer crude oil and monomer prices. As end-products demand started to recover from the unprecedented pandemic-fueled collapse, most downstream factories were getting ready to ramp up production, while some factories already resumed production and restored output to normal levels. SSESSMENTS.COM’s demand and supply database noted that the availability of spot domestic and import cargoes remain sufficient at the moment.
For the outlook, market participants foresee that Vietnam PET market will suffer from the seasonal slowdown in the near term as the rainy season starts to set in. As such, the outlook for demand and pricing is pessimistic.
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