Firming international trend encourages price hike in local Indonesia PET market

In the past couple of weeks, major regional producers have lifted their export PET offers to the market, claiming high production costs as a result of surging MEG and PX costs.

For this, major local producers in Indonesia have voiced plans to increase domestic offers in the coming week, in line with the depreciation of the rupiah and the firming international trend. One of the local maker expected to lift prices for their cargoes by $50/ton said, “This week we maintain our offers at $880/ton FD Indonesia, cash term, which is well bellowed import offers from Chinese suppliers. We think a price increment is necessary, especially with the current costs situation.” 

Converters, however, are not very welcoming such intention, pointing to the unsupportive demand condition. A beverage bottle manufacture commented, “Our end product is slow due to the raining season. We are holding comfortable stock on hand now. We think it is very difficult to materialize any significant increases at the moment and market would resist really strongly.”

Another producer intended to implement IDR500,000 ($37/ton) on local cargoes said, “We do expect demand in China to be better in the coming month due to the preparation for Lunar New Year holidays. Feedtocks are firming up and might remain strong in the near term due to healthy demand from polyester sector. We are in need to cover our profit margins.” 

Domestic PET in Indonesia currently stand at IDR12,000,000-12,700,000/ton FD Indonesia, cash term.