Seasonal Pattern And Crude Oil Prices Split Outlook For Vietnam PET Market Into Two Directions
- Local PET prices maintained last week’s trend
- Import PET offers of Indonesia and Thailand origin moved in the same direction
- Players shared a different outlook
SSESSMENTS.COM noted that the outlook for Vietnam PET market is moving into two directions on the back of seasonal patterns and crude oil prices. On the week commencing May 25, local and import PET prices in Vietnam market remained on the uptrend on the back of firmer crude oil and feedstock prices. In the local market, some traders were offering local PET Bottle at VND19,000,000/ton ($812/ton), higher by VND800,000/ton ($34/ton) as compared to last week’s done deals. While from the producers’ end, a local producer in the country has increased the offers between VND300,000-500,000/ton ($13-21/ton) from last week, stood at VND19,300,000/ton ($825/ton). However, a converter in the Northern part of the country managed to conclude a deal for the producer’s cargoes at VND18,400,000/ton ($786/ton). Likewise, some traders were offering at VND18,400,000/ton ($786/ton) since there are some cargoes left for May allocation. All offers were on cash, FD Vietnam basis and including 10% VAT. In the import market, Indonesia and Thailand origin cargoes surfaced with increases of $20/ton and $10-20/ton respectively.
Overall, demand for PET Bottle in Vietnam is not strong yet; most sellers stated that their sales are relatively stable from last week. Some buyers halt purchases as they have already replenished the inventory when the offers were on the downtrend. While some others were still trying to secure some materials in anticipation of further price increases. For the end products, demand remains steady but cannot be considered robust yet, SSESSMENTS.COM was told. On the supply front, no significant issues were reported by Vietnamese market players.
Vietnamese market players foresee a different outlook. Some players opined that the rainy season and the Coronavirus outbreak in the international market will affect sales for PET finished products. However, some others shared an optimistic outlook since crude oil prices have rebounded and the overall demand is gradually improving, as stated to SSESSMENTS.COM.
Click below to view related stories and content on Vietnam PET:
WeeklySSESSMENTS: Vietnam PET Prices Week Starting May 18
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