Local PET prices in Indonesia remain stable to firmer on limited supply

Indonesian buyers reported that domestic producer this week hold very firm on PET offers despite softer import prices. One of the factors supporting such development is the tightening local supply as couple of producer reduced operating rate or switch to make other grades.

A producer open new prices at IDR‎14,100,000-14,250,000/ton ($1060-1070/ton) excluding VAT, cash term, which are IDR300,000/ton ($23/ton) higher than last week. A source close to the maker informed, “We have been running at 70 per cent capacity for over a month now, hence not having pressure at the moment. Demand is not very strong since it is the Ramadan season, however we think the situation would improve in the post holiday term.”

Another producer maintain prices at IDR13,800,000/ton ($1037/ton) without VAT, FD Indonesia, cash term said, “We switch two out of three PET plants in Indonesia to make PET film since the margin is better. We are still maintaining our offers unchanged, however, might adjust in the coming week.”

Couples of buyers are complaining that regular domestic suppliers are unable to fulfill regular allocation and with the recent increases, import market might regain the attractiveness.

Domestic PET prices in Indonesia currently stand at IDR13,800,000-14,250,000/ton ($1037-1070/ton) excluding VAT, cash term.