More re-export PE cargoes emerged in Vietnam

Vietnamese players reported receiving a considerable number of re-export PE offers from China this week mostly above the $1200/t threshold, creating a great concern over the state of demand in Asia’s biggest buyer.

A trader reported to have received HDPE film re-export offers from China for various origins including Iran, Korea and Taiwan at $1210-1235/t CIF Vietnam, LC AS term. The source added, “These offers are not very competitive in term of price, however the promptness has offset some of the drawbacks. We are seriously considering the purchase now as deep-seas cargoes have time disadvantage. Besides, weak local demand for HDPE film is also another concern.”

Meanwhile, some Brazilian LLDPE film cargoes were offered at $1230/t re-export from China warehouse recently. However, buyers complain about the unfamiliarity of this grade with a market source said, “We do not find this cargoes to be attractive due to its specification. Some of our suppliers are discussing about re-exporting more regular origins at $1250-1255/t and we think this might work at the current market condition.”

Bearish sentiment in China and weaker demand for PE has encouraged sellers in this country to seek for re-export outlets in an effort to optimize profit margin. A seller in Shanghai told CommoPlast, “We have cargoes available and willing to talk to SEA players if there is any interest.”

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