Local PET offers in Indonesia extend softening trend

A major PET producer in Indonesia has announced fresh offers to local buyers with IDR200,000/ton ($15/ton) reduction from last week, reaching IDR14,300,000/ton ($1073/ton) without VAT, FD Indonesia, cash term.

A source close to the producer informed that persistent weak demand in local market and stiff competitive from import ground are the main drivers behind the move. The source added, “Buyers are placing bid at IDR500,000 ($38/ton) lower than initial offers, however we are unable to meet this price idea at the moment. Stock in local market is piling up and if demand does not pick up in the near term, we might have to adjust operation rate to reduce inventory pressure.”