Southeast Asian producers cut LDPE film prices to Vietnam

Vietnamese players this week start receiving fresh Southeast Asian LDPE film offers for June delivery at reduced levels compared to the latest opening. Indeed, CommoPast data showed some $20-80/ton reduction for LDPE film cargoes from various regional makers within this week. Players attribute such rapid fall to persistent sluggish demand as buyers conserved the confidence for the near term outlook.

A Malaysian producer opens new prices at $20/ton lower than last week to reach $1220/ton CIF Vietnam, LC AS term commented, “Buyers are simply very reluctant in making fresh purchases, not only in Vietnam but also other markets. We are having comfortable cargoes at the moment, hence we plan to deplete our inventories in the coming days.”

Meanwhile, another producer announced initial LDPE film prices at only $20/ton lower than last month, however committed to additional $60/ton cut later at $1220-1230/ton with hope to stimulate demand. Despite a total of $80/ton dropped, buyers are still showing little interest claiming possibility of further reduction with a source said, “We might only purchase a small quantity to maintain relationship as domestic market is very weak, which we think there might not be any margins for us when the cargoes arrive.”

Moreover the availability of Thailand cargoes at well below the $1200/ton threshold is giving market participants reason to be on the sideline. Buyers reported seeing Thailand LDPE film offer at as low as $1170/ton, some $30-35/ton lower than last week. Most players contacted by CommoPlast are displaying their preference to wait instead of active buying after receiving such considerable price cut.

Import LDPE film prices to Vietnam is currently reported at $1170-1280/ton, CIF Vietnam, LC AS term.