Import HDPE prices at the upper end facing resistance in Vietnam

With the rebound in ethylene monomer costs and signs of improved demand condition in recent weeks, most overseas suppliers are attempting to lift their HDPE prices to Vietnam this week in bid to cover higher production costs. However, mediocre end product demand is discouraging buyers from taking large quantity, while prices at the upper end of the overall price range are facing tough time attracting customers.

Indeed, a major Thailand producer implemented fresh hike on their HDPE film cargoes this week, lifting the latest offer to $1200/ton CIF Vietnam, LC AS term. Source from the producer informed, “We only managed to conclude a small quantity after agreed to $5/ton discount. Sales after that are really disappointed. Most of our regular customers are not in the mood to place any bid, claiming availability of more competitive cargoes.”

Another trader received offer for Thai HDPE film at the above mentioned levels said, “We find it really difficult to accept such high prices since we have not been able to achieve that levels in local market. We also received offers for same origin at $40-50/ton lower, and we plan to replenish this cargoes instead.”

Converters active in exporting their end products are expressing their buy ideas mostly at the lower end of the overall price range with a HDPE bags maker said, “We are running low on inventories now and we plan to replenish some cargoes to maintain stock levels. However, prices at the $1200/ton threshold are too risky to accept. We are checking with several suppliers before decide on our purchases.”

Import HDPE film to the country is currently reported at $1150-1200/ton CIF Vietnam, LC AS term.