Local LLDPE film prices moved south in Vietnam

According to market sources, persistent weak demand from domestic buyers and softening upstream costs have forced local traders in Vietnam to cut LLDPE film prices in order to smoothen sales process. Several sellers reported to have cut offers by VND100,000-300,000/ton ($5-14/ton) compared to yesterday for locally held Middle Eastern LLDPE film  cargoes.

A trader sold Saudi Arabia LLDPE film at VND29,600,000/ton ($1205/ton without VAT) and Brazilian LLDPE film at VND29,400,000/ton ($1200/ton without VAT) said, “Demand is surprisingly weak at the time purchasing activities should pick up. We make no profit selling these cargoes. If this condition persist in the coming days, we fear market might be softened further. We plan to deplete more inventories within this week.”

Another buyer expressed more of cautious stance regarding the near term outlook informed, “Upstream costs is softening and import offers are concluded at lower levels. We prefer to withdraw to the sidelines to monitor further market movement before taking position.”

Domestic LLDPE film prices in Vietnam currently stand at VND29,400,000-30,100,000/ton ($1200-1225/ton without VAT), FD Vietnam, cash term.