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Indonesian buyers before going off for the long Ramadan holidays reported receiving new import PET offers originated from China with $5-10/ton reduction from last week. The latest prices for this origin ranging $1380-1400/ton CIF Indonesia, LC AS term with limited deals observed.

The reduction comes as a result of softer demand in the country, sources said. Major converters in the bottled beverage sectors have not received a satisfactory number of end product orders for July, which discourages replenishment activities. “New orders might only come in August, and hence we have sufficient time to wait. Current market levels are beyond our acceptance,” a bottle maker commented. 

A regional trader offers Chinese PET to Indonesia at $1380/ton CIF, LC AS term added, “It becomes very difficult to attract deals at prices above the $1400/ton threshold for Chinese cargoes given the 5 per cent import duties. Supply remains tight and the market would hold firm in July would demand to revive.” 

In domestic market, local cargoes are available in the range IDR20,500,000-21,000,000/ton ($1470-1506/ton) without VAT, FD Indonesia, cash equivalent. “It is undeniable that availability at the moment is not that comfortable. Domestic makers would only be able to deliver the cargoes by end of the month if we place orders now. Market is entering the off-peak season and we hope to achieve slightly better prices in the coming month,” another buyer added. 

Import PET to Indonesia recorded a sharp rise since early April 2018 thanks to healthy demand in the nearby China market. Indeed, Chinese buyers have been actively looking for replacement materials after the government imposed a ban on import plastic scraps that rock the recycle industry here.