Local PP, PE price in Vietnam firmed up, demand improved

The persistent weak demand observed on local Vietnam market during quarter three of this year appears to have melted way, in line with the start of the high demand season and the catalysts of healthy purchasing activities in near-by China market.

Since late last week, domestic traders have been attempting to increase their offers and till today, local prices have been firming up in small range and a good sign is buyers have accepted new prices and start to replenish material. A trader commented, “We are happy with the current state of demand and we plan to replenish some cargoes from local stockists. If this condition persist in the coming days, further price increment is possible, just that large hike might face resistance.”

Another trader added, “Demand for both PP and PE is good this week. Even HDPE film has gained some ground recently. However, we remain cautious, as there is a large quantity of homo-PP arriving main ports in November, which might boost supply locally.”

Today, both PP and PE offers in local market has firmed up another VND100,000-200,000/ton ($5-10/ton) compared to yesterday to reach VND26,000,000-26,300,000/ton ($1058-1070/ton without VAT) for homo-PP; at VND30,400,000-30,700,000/ton ($1235-1250/ton without VAT) for LLDPE film, at VND28,200,000-28,400,000/ton ($1145-1155/ton without VAT) for HDPE film, all based on FD Vietnam, cash term.