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Just when the market expects PET bottle market to be nearing the bottom on firmer upstream costs, a couple of major Chinese producers decided to slash prices further to Indonesia, sending latest offers deep below the $1100/ton threshold. 

At the moment, Chinese PET bottle offered to Indonesia stands at $1060-1070/ton, CIF, LC AS term.

Demand is not very sturdy here due to the monsoon season, while local supply is rather comfortable. “We decided to postpone the purchases to next week. Demand for our end product is pretty sluggish at the moment,” a pre-form bottle maker said. 

In the meantime, domestic producers reported having two months worth of inventories on hand and it seems that stock digestion rate is not as quick as expected. “We think there is still a chance for a further reduction in the coming days,” another buyer added.   

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China  Indonesia