Vietnam’s PE markets soften after 3 to 4 months of upward trend

In Vietnam’s import PE markets, the upward trend that had persisted since late June, has faltered as of last week. Prices have experienced slight downward corrections after reaching around six-month highs. Following suit, local prices have softened this week in the face of persistently subdued demand.

HDPE, LLDPE slightly down for second week in a row

For the second consecutive week, import PE suppliers marginally lowered their offers to Vietnam. They attributed this adjustment to the absence of most buyers from the market, influenced by a combination of stagnant downstream businesses and the ongoing Chinese holidays.

An agent of a Middle Eastern producer noted, “We have reduced our HDPE and LLDPE film offers by $20/ton from last week. The market is very quiet as China is on holiday. Buyers prefer to wait until the Chinese holiday is over. They anticipate that prices may further decrease, so there is no rush to replenish. Meanwhile, the demand for end products remains weak.”

The trader made a similar comment, saying, “The market is exceptionally quiet this week, with few offers being presented. Many buyers prefer to stay on the sidelines, especially considering the weak demand for end products. Most of them anticipate a downtrend, prompting them to refrain from taking action at this moment.”

Import prices for Mid-Eastern origins are currently quoted at $1030-1070/ton for HDPE film and at $990-1020/ton for LLDPE film, all on CIF Vietnam, cash basis.

Tightness props up LDPE film

On the other hand, import LDPE film prices were largely stable from last week, with suppliers blaming a lack of availability for their current price policy for the grade.

The abovementioned agent of a Mid-Eastern producer said, “Despite the reduction in our HDPE and LLDPE film offers, we have had to keep LDPE film at a high level due to tight supply.”

Mid-Eastern LDPE film shipments are currently offered at around $1040-1060/ton CIF, cash.

Local market also eases despite currency depreciation

Despite the latest depreciation of the Vietnamese dong against the US dollar, some local sellers have made downward adjustments to their offers, citing the recent downturn in the import markets. Others, who maintained price levels from the previous week, acknowledged that there is currently no room for further increases in PE.

A packaging converter reported that local PE prices have seen a slight decline this week. “Over the past few weeks, offers for Saudi-origin LLDPE and LDPE were exceeding VND28,000,000/ton. However, due to tepid responses from customers and reduced import offers, some local traders have adjusted their pricing. Demand for end products continues to be weak. Currently, our factory is operating at a 60-70% rate. We prefer to adopt a need-based purchasing approach and maintain low inventory levels.”

Compared to the previous week, local HDPE and LLDPE film prices are stable to down by around VND500,000/ton ($21/ton).