Vietnam’s import PE prices rebound over 2 weeks; but demand struggles persist
by Thi Huong Nguyen - thihuongnguyen@chemorbis.com
After a consistent downtrend since mid-June, PE prices in Vietnam have rebounded since early October. LDPE film has outperformed the other two main film grades, supported by favorable supply-demand fundamentals.
The strong return of China’s PE markets, combined with earlier strength in crude oil prices, has offered some support to sellers. Players noted noticeable changes in supply, with re-exports from China deemed unlikely due to narrowing price gaps between the two markets. However, weak overall demand has slowed trading activity, raising doubts about the sustainability of the uptrend.
Saudi producers hike Nov PE offers
A major Saudi producer announced their PE offers for November shipments with $10/ton increases compared to October for HDPE blow molding and inj. to respectively stand at $1000/ton and $980/ton and with a $40/ton increase for HDPE film at $1020/ton, all on CIF Vietnam, cash basis. The producer’s new LLDPE offers stood $30/ton higher from the previous month at $1040/ton while LDPE offers saw a larger increase of $80/ton to be reported at $1250/ton CIF, cash.
Similarly, another Saudi producer increased their November HDPE film offers by $10/ton and LLDPE film offers by $30/ton from a month earlier to $980/ton and $1010-1020/ton, respectively, both on a CIF Vietnam, cash basis.
Prices reach around 2-month highs
This week, PE prices for all origins were assessed $10-20/ton higher from the previous week at $1170-1250/ton for LDPE film, $30/ton higher at $990-1040/ton for LLDPE film, and $20-40/ton higher at $970-1010/ton for HDPE film, all on a CIF, cash basis. Data from ChemOrbis Price Index reveal that the weekly averages of prices have reached around two-month highs.
LDPE takes lead in both local, import markets
Similar to trends seen across Asian PE markets, LDPE film in Vietnam has outperformed both local and import markets. This strength is attributed to supply shortages and an uptick in demand. A trader from Ho Chi Minh City shared, “Demand for LDPE film is solid as some buyers are rushing to restock, anticipating further price hikes.”
According to ChemOrbis data, LDPE film prices continue to carry a hefty premium of around $200-220/ton over the other two grades.
Demand slowdown casts cloud over markets
Despite these price increases, trading activity remains subdued due to weak demand. Converters and traders have adopted cautious purchasing strategies, either buying only what is necessary or waiting for year-end promotions.
A source from a producer noted, “Sellers often offer extra discounts at year-end to clear inventories and improve their financial reports. However, weak downstream orders have reduced buying interest, and many prefer to source locally rather than import materials.”
A bleak picture of demand, accompanied by the relentless downhill movement in crude oil futures, has dimmed sellers’ confidence, with many of them struggling at raising the prices further. “We find it difficult to apply additional increases since faltering demand might leave room for downward adjustments,” the source added.
The strong return of China’s PE markets, combined with earlier strength in crude oil prices, has offered some support to sellers. Players noted noticeable changes in supply, with re-exports from China deemed unlikely due to narrowing price gaps between the two markets. However, weak overall demand has slowed trading activity, raising doubts about the sustainability of the uptrend.
Saudi producers hike Nov PE offers
A major Saudi producer announced their PE offers for November shipments with $10/ton increases compared to October for HDPE blow molding and inj. to respectively stand at $1000/ton and $980/ton and with a $40/ton increase for HDPE film at $1020/ton, all on CIF Vietnam, cash basis. The producer’s new LLDPE offers stood $30/ton higher from the previous month at $1040/ton while LDPE offers saw a larger increase of $80/ton to be reported at $1250/ton CIF, cash.
Similarly, another Saudi producer increased their November HDPE film offers by $10/ton and LLDPE film offers by $30/ton from a month earlier to $980/ton and $1010-1020/ton, respectively, both on a CIF Vietnam, cash basis.
Prices reach around 2-month highs
This week, PE prices for all origins were assessed $10-20/ton higher from the previous week at $1170-1250/ton for LDPE film, $30/ton higher at $990-1040/ton for LLDPE film, and $20-40/ton higher at $970-1010/ton for HDPE film, all on a CIF, cash basis. Data from ChemOrbis Price Index reveal that the weekly averages of prices have reached around two-month highs.
LDPE takes lead in both local, import markets
Similar to trends seen across Asian PE markets, LDPE film in Vietnam has outperformed both local and import markets. This strength is attributed to supply shortages and an uptick in demand. A trader from Ho Chi Minh City shared, “Demand for LDPE film is solid as some buyers are rushing to restock, anticipating further price hikes.”
According to ChemOrbis data, LDPE film prices continue to carry a hefty premium of around $200-220/ton over the other two grades.
Demand slowdown casts cloud over markets
Despite these price increases, trading activity remains subdued due to weak demand. Converters and traders have adopted cautious purchasing strategies, either buying only what is necessary or waiting for year-end promotions.
A source from a producer noted, “Sellers often offer extra discounts at year-end to clear inventories and improve their financial reports. However, weak downstream orders have reduced buying interest, and many prefer to source locally rather than import materials.”
A bleak picture of demand, accompanied by the relentless downhill movement in crude oil futures, has dimmed sellers’ confidence, with many of them struggling at raising the prices further. “We find it difficult to apply additional increases since faltering demand might leave room for downward adjustments,” the source added.
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