More PET buyers in SE Asia turn to local markets

15-Sep-15

more PET buyers in Southeast Asia are turning to their local markets recently, considering local prices to be more competitive than imports, according to ChemOrbis. The stronger dollar gave domestic sellers an upper hand and the prompt availability advantage is also attracting buyers to the local market given the uncertain economic outlook. A Malaysian producer reduced PET prices by MYR50/ton (US$12/ton) to the local market. A producer source commented, “We have received a good response from buyers so far. Following the implementation of anti-dumping duties for Chinese cargoes, we see less imports in the market. In addition, the depreciation of the Ringgit also caused buyers to source local material instead of imports.” A converter in Indonesia reported, “Our end product demand is still stable and we are making purchases on a regular basis. We feel that import PET is not competitive compared to local cargoes anymore. Therefore, we prefer to source locally for now. Meanwhile, supply remains sufficient in the local market.” Another buyer in Thailand reported receiving lower local PET offers compared to last month, commenting, “We are not rushing to make new purchases for now as demand for our end product is a bit sluggish and we do not expect to see much improvement in the short term. Prices in the local market are quite competitive compared to imports and supply from local producers is still sufficient.”