Local PP, PE prices slightly up in Vietnam

Vietnam’s local PP and PE markets have witnessed slight increases so far this week. Although some players report that demand showed a slight improvement in line with Chinese New Year preparations, buyers mostly prefer to remain on the sidelines and limit their purchases on a needs-only basis until the market direction becomes clearer.

A converter noted, “We are purchasing in small quantities from the local market as we are not willing to wait for the shipments of import cargoes. Local prices are slightly higher in November when compared to October levels.”

A trader offering Saudi Arabian and Vietnamese PP opined, “The overall demand is still weak, However, we are planning to increase our local offers by VND200,000/ton ($9/ton) as some other traders already raised their offers.”

A household products manufacturer operating in Vietnam said, “Demand for our end-products is better due to the approaching Chinese New Year. However, we are on a wait and see position as we have sufficient inventories while the market trend is unclear for now.”

A PP, PE trader commented, “We heard there is limited HDPE film as producers are switching to HDPE pipe production amidst better profit and demand from the construction sector. Considering this, we may buy some PP and PE this week since prices are likely to remain firm in the short term. We think demand will also increase until Chinese New Year.”

On the other hand, another trader said, “It is hard to predict the market direction. Still, we think higher prices are not enough to push demand up.”

Prices for locally-held cargoes in Vietnam are currently standing at VND29,500,000-30,200,000/ton ($1190-1219/ton without VAT) for homo-PP raffia, at VND29,600,000-30,200,000/ton ($1194-1219/ton without VAT) for homo-PP injection, at VND31,500,000-32,000,000/ton ($1271-1291/ton without VAT) for LDPE film and HDPE film and at VND29,500,000-30,500,000/ton ($1190-1231/ton without VAT) for LLDPE film, all on an FD Vietnam, cash equivalent basis inc VAT. When compared to last week, these ranges show increases of around $8-41/ton.