Re-exported PE from China floods Vietnam; Mid-East May offers dive to compete

The Vietnamese PE market continued to face intensified competition this week as a growing influx of re-exported cargoes from China undercut prices, forcing major Middle Eastern producers to respond with aggressive May discounts.

Re-export LDPE film from China dips below $1050 CIF

A Vietnamese trader reported that the number of re-export offers from China has surged, particularly for US and Saudi-origin material. The trader received US LDPE film at $1040/ton CIF Vietnam, cash, a significant $60/ton drop from last week’s range. Saudi-origin LLDPE film re-exported from China was also offered as low as $970/ton CIF.

“Demand remains weak amid an influx of re-export shipments from China. Local prices are also soft, but because of high exchange rates, they haven’t fallen much. Most players are still in wait-and-see mode,” he noted.

Mid-Eastern suppliers slash May PE prices to regain competitiveness

Under mounting pressure, key Middle Eastern producers announced sharp cuts for May PE offers to Vietnam.

A major Saudi Arabian producer dropped prices by $50/ton for HDPE film, $60/ton for both LLDPE and LDPE film, $40/ton for HDPE blow molding, and $80/ton for HDPE injection compared to April levels. May offers now stand at $1150/ton for LDPE film, $980-990/ton for LLDPE film, $930-970/ton for HDPE film, $940/ton for HDPE blow molding, and $900/ton for HDPE injection, all CIF Vietnam, cash.

Traders noted that another major Saudi producer implemented even larger reductions, cutting LLDPE film by $90/ton and HDPE film by $70/ton. Their May LLDPE film offers dropped to $950-960/ton and HDPE film to $910-930/ton. “Demand is slightly better than last month, but still far from strong,” said a trader. “This producer’s allocation has been cut by 25% from normal levels, to just 2000 tons this month.”

Meanwhile, a Qatari producer held their weekly offers mostly stable amid weaker demand, though a source noted they could adjust if market feedback worsens. The producer has not offered LLDPE film due to a planned shutdown since April 9, which is expected to end within a week.

Downtrend deepens following last week’s price collapse

These new developments build on last week’s sharp downturn, when LDPE and LLDPE prices for both US and Middle Eastern origins tumbled across Southeast Asia.

As trade tensions persist and re-exports from China continue flowing, regional buyers are remaining cautious. “There’s an expectation that prices still have room to fall,” said a Vietnamese trader. “No one wants to overstock in this kind of market.”