Local PET Prices In Vietnam Continue To Head South As Driven By Lack Of Demand Support
- Local and import PET Bottle offers showed a diverse movement
- No significant improvement observed in buying sentiment
- Local PET prices expected to remain on a downtrend
As SSESSMENTS.COM noted, local PET prices in the Vietnam market continue to head south as driven by lack of demand support. This week, offers for local PET Bottle surfaced with a downward adjustment of VND700,000-1,000,000/ton ($30-42/ton). In the US Dollar denomination, local PET Bottle offers were captured at $15/ton lower. All on a weekly comparison. To date, a converter managed to conclude deals for local cargoes at VND18,700,000/ton ($793/ton) on cash, FD Vietnam basis and including 10% VAT, which is around VND1,000,000/ton ($42/ton) lower from their previous deals concluded on April 28. Unlike local, import prices for PET Bottle this week were stable to firmer. Compared to last week, import PET Bottle offers of China origin increased between $5-15/ton. Meanwhile, import PET Bottle offers of Thailand and Indonesia origins remain stable compared to the same period. Some traders stated that the uptrend is supported by monomer prices coupled with the limited offers for China origin cargoes amid Labor Day holiday. Following suit, a Taiwanese trader plans to raise their offers between $15-20/ton. Additionally, the trader has sold some volume of PET Bottle to the Vietnam market at $10/ton lower than the initial offer level.
In general, Vietnam PET market this week is still quiet. No significant improvement in buying sentiment although the social isolation guidelines have been lifted since April 22, with the exception for some high-risk areas. Recently, a number of suppliers are aggressively selling their cargoes as demand is constantly weakening week over week. However, most converters are having sufficient stocks at the moment, hence, they are not keen on making procurement. Besides, sales for end-product remain subdued this week. On the supply side, no significant issues reported to SSESSMENTS.COM.
In the upcoming weeks, the majority of Vietnamese market players contacted by SSESSMENTS.COM predict that local PET prices will remain on a downtrend considering the current state of demand. However, the price reduction is believed to be insignificant as sellers will also be cautious in making adjustments amid market uncertainties. Likewise, there is no sign of improvement observed in terms of demand.
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