Local PE prices in Vietnam continue to move down on the new week

Players in Vietnam reported receiving lower HDPE film and LLDPE film from domestic traders on the first trading day of the week on the back of fading demand and increased supply from re-export cargoes from China.

A converter received VND200,00/ton ($9/ton) reduction on locally held Thailand HDPE film and Middle East LLDPE film at VND29,200,000/ton ($1190/ton without VAT) and VND31,000,000/ton ($1265/ton without VAT) respectively, all based on FD Vietnam, including VAT. The source added, “Offers we received have dropped a total of VND300,000-500,00/ton ($13-22/ton) compared to early last week. Demand for our end product is very weak at the moment; even exporting does not carry many orders. We have sufficient inventories for LLDPE film now, and we plan to replenish just a small quantity of HDPE film within this week.”

Another trader cut prices by VND200,000/ton ($9/ton) compared to last week said, “We haven’t been able to close any sales these few days. Re-export cargoes are coming very frequently at competitive levels, fuelling buyer’s concern regarding near term outlook. We prefer to not to take position at the moment to avoid any price risk.”

Weaker than expected end product demand and perceived bearish outlook have had buyers waiting on the sideline rather than actively participate in the market recently. This condition might deepen in the near term given softer ethylene feedstock, sources added.