Local PE prices move below imports in Vietnam
Demand towards import materials has been reportedly weak over the past weeks as most buyers prefer to secure their needs from the local market where more competitive offers are obtainable. In the face of buyers’ resistance, overseas suppliers’ slightly lowered their offers for October after approaching the market with notable hikes.
A PE trader operating in Vietnam commented, “Despite our low supply levels, we are refraining from securing any import material for the moment as we believe that import prices still have room for further softening in the days ahead.”
A second trader opined, “Import PE prices have slightly decreased this week, yet we are not planning to make any fresh purchases from overseas suppliers since we are able to find much more competitive offer levels in the distribution market. Demand is weak, except for HDPE which is tight.”
As can be seen in the below graphs created by ChemOrbis Price Wizard, the weekly average of import HDPE film has been hovering above locals since mid-September, carrying a premium of around $15-20/ton over the local market at the moment. Under balanced market conditions, imports are expected to trade below the local market and the local market is expected to carry premium over imports.
In Vietnam, the overall ranges for local PE prices are currently standing at VND32,000,000-33,000,000/ton ($1293-1333/ton without VAT) for LDPE film, at VND29,000,000-30,800,000/ton ($1172-1245/ton without VAT) for LLDPE film and at VND29,000,000-30,000,000/ton ($1172-1212/ton without VAT) for HDPE film, all on FD, cash including VAT basis.
As for the import market, overall prices are quoted at $1300/ton for LDPE film, at $1200-1230/ton for LLDPE film and at $1210-1240/ton for HDPE film, all on CIF Vietnam, cash basis.
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