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Despite the traditional peak seasonal demand for PET bottle has passed, converters in Indonesia reported seeing healthy demand for their end products, which support raw material replenishment activities in local market after the Ramadan holidays. 

A converter received offers for domestic PET bottle cargoes at $960/ton FD Indonesia, cash term, some $20/ton reduction from last month said, “We have just signed contract for our end product till December, which is better than our expectation. Domestic makers are still holding firm on their cargoes given the up coming turn-around at one of the plant. We are searching for additional cargoes to maintain our stock levels.”

Another converter making soft drink packing added, “Our thermo bottle business is slightly better than PET in recent month, however we have not experienced any drop in orders. We are planning to replenish some cargoes from domestic market in the near term, however, we are talking to our suppliers to obtain some discounts.”

Discussing with a domestic producer about the market prospect in the near term, source from the maker commented, “We are not having any pressure to cut price based on the current demand condition in domestic market. Besides, our production costs are slight higher now due to firm feedstock values.” Players are also looking at the number of PTA plants in China that are forced to shutdown during the G20 Summit, which might cause higher monomers costs and influence the downstream PET market trend.