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Chinese suppliers resume working after the weeklong Lunar New Year holiday carrying the mood to lift export offers for PET bottle cargoes. In fact, Indonesian buyers reported having received fresh price lists from two separate producers at $20-25/ton higher compared to the pre-holiday period, reaching $1100-1110/ton CIF Indonesia, LC AS. These cargoes are subjected to 5 percent import duties.

“Higher costs are the main factor supporting the hike, but we also expect demand to pick up soon considering the traditional high demand season is just around the corner,” a Chinese trader commented. 

Demand for PET bottle normally picks up in March as bottled beverage manufacturers prepare for the summer season.

On the other hand, Indonesian buyers are not showing a strong appetite for replenishment, citing competitive local cargoes. At the time this report is published, domestic materials are available in the range IDR16,500,000-17,800,000/ton ($1174-1266/ton) without VAT, cash equivalent.   

“We are monitoring at the moment. The cost-push might not be strong enough to sustain the firming trend. Meanwhile, local suppliers appear to have the selling mood that gives us an upper hand in negotiating for discount,” a converter informed. 

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Indonesia