Local producer lifted PET prices in Indonesia

Indonesian buyers reported that couple of domestic producer decided to lift local PET prices this week by IDR250,000-300,000/ton ($19-23/ton) from last week despite weaker than expected demand condition. Domestic PET prices in Indonesia this week stand at IDR13,800,000-13,850,000/ton ($1038-1042/ton) without VAT, FD Indonesia, cash term.

A producer managed to conclude deal for some quantity at the new price levels said, “Upstream costs are rather firm recently and we need to protect our profit margins. Sales are not strong at the moment and June outlook is rather cloudy as the fasting month is just around the corner.”

A beverage bottle maker added, “We don’t see any significant pick up in end product demand even though market is in the traditional high demand season. Raw material prices firm up, including import offers, hence we decided to stock up a small quantity.”

Players in the country are very cautious about making fresh replenishment ahead of the government final decision on imposing anti-dumping duties on import Chinese PET. Many are also question the sustainability of the current firming trend.