Local PET moves higher in Indonesia

Indonesian players this week reported receiving higher offers for PET from local producers, in line with the expectation discussed in the previous week. On an average, local prices have firmed up in the range of IDR200,000-810,000/ton ($15-60/ton) on higher feedstock costs; however, buyers are not enthusiastic about making fresh purchases.

A producer source informed, “Feedstock costs have been strong recently, and we are left with no choice but to increase selling prices to protect margins. Besides, other international suppliers have also lifted their prices.”

On the other side, buyers continue to complain about weak end product businesses and plan for hard negotiation for discount. A beverage bottle maker informed, “We can’t accept too large increment amid slow end product business. At the moment, we are still having some inventories on hand to meet production need; hence we are not planning to restock so soon.”

Despite the unsupportive demand condition, suppliers might refuse to step back on their prices, especially with the latest development in the energy market that could lift feedstock prices higher.

Local PET offers in Indonesia currently stand at IDR12,500,000-13,100,000/ton ($940-970/ton) without VAT, FD Indonesia, cash term.