Local PP and LLDPE film prices in Vietnam head north: Traders

Vietnamese traders on the first trading day of the week reported lifting domestic offers for locally held homo-PP and LLDPE film cargoes on the back of limited supply and firming international trend. However, buying appetite appears to be weaker as converters take more cautious stance to monitor the impact of Brexit.

A trader lifted locally held Saudi homo-PP cargoes by VND400,000-500,000/ton ($18-22/ton) from last week at VND26,200,000-26,400,000/ton ($1065-1075/ton without VAT, FD Vietnam, cash term. The source said, “There is very limited cargoes available in domestic market at moment and we hope the firming trend can sustain in the coming days. Just that our regular customers are showing resistance towards the latest offers, in which they are limiting the purchase quantity to minimal given uncertainties regarding the near term outlook.”

Another trader open offers for Saudi Arabia LLDPE film at VND200,000-300,000/ton ($9-13/ton) higher said, “We were not able to obtain any LLDPE film cargoes from import market these few days due to some unexpected plants issues in SEA and MEA region. We think LLDPE film prices might continue to advance in the coming days in line with the increased seen in international ground.”

Domestic homo-PP in Vietnam is now at VND26,200,000-26,800,000/ton ($1065-1090/ton without VAT) and LLDPE film is at VND30,400,000-31,000,000/ton ($1235-1260/ton without VAT), all based on FD Vietnam, cash term.