Vietnam’s PE market sees first hike attempts after two months
PE sentiment improves in neighboring China
Rising LLDPE futures amid the positivity around the resolution of China-US trade talks, retreating local polyolefin supplies and strong energy complex have helped the sentiment improve in China’s PE market after a long period of weakness.
This recovery has found a reflection on Vietnam’s PE market, helping suppliers renew confidence.
Sellers attempt for hikes despite ample supply
A few traders reported that their import PE offers to Vietnam have indicated increases of around $10-20/ton when compared to last week. Local PE prices, meanwhile, have been stable to VND500,000/ton ($22/ton) higher recently.
“PE prices are slightly higher this week despite persistently ample availability, which may limit the amount of any further hike attempts,” they opined.
Demand improves under shadow of low season
Despite the low season for PE applications, demand has shown a cautious improvement nowadays. The recovery in China’s PE market and firmer energy costs were cited as factors boosting demand.
However, buyers are taking a dim view about the sustainability of the recent hike attempts.
Crude oil futures remain strong
The fact that crude oil futures have started July on firm footing also supports the sentiment. According to ChemOrbis Price Wizard, August WTI (NYMEX) crude oil futures have been hovering around a five-week high recently.
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