Vietnam’s PE market crumbles under US pressure; HDPE bm falls below $800

Vietnam’s import PE market is facing one of its sharpest downward spirals in recent months, dragged down by an influx of competitively priced US cargoes and re-export shipments from China. Following the temporary suspension of US tariffs on regional economies and intensifying trade friction between Washington and Beijing, US suppliers have turned to Southeast Asia to offload surplus cargoes, triggering a fresh wave of price erosion, particularly in Vietnam, the region’s most exposed market.

Adding to the pressure, Middle Eastern suppliers slashed May offers in response to the rising influx of re-exports and intensified competition. A major Saudi producer issued steep reductions last week, while traders noted that further price cuts were granted during negotiations.

HDPE blow moulding crashes below $800

The most striking development was in HDPE blow moulding, where a Vietnamese converter reported receiving a US-origin offer at just $790/ton CIF Vietnam, cash, the first time this grade has dipped below the $800 threshold since June 2020.

“The market is spiraling down faster than expected,” said a Vietnamese trader. “With US offers falling every week and re-exported cargoes from China also flooding the market, buyers have no urgency to commit.”

US-origin HDPE film was offered as low as $840/ton CIF, marking a $60/ton drop from the previous week and indicating an almost five-year low. Meanwhile, LLDPE film saw a $30/ton fall, with new US offers reported at $920/ton CIF Vietnam.

Market quietens amid holiday, weak demand, and falling prices

Market activity in Vietnam has noticeably slowed down this week. Players attribute the quietness not only to the long public holiday in Vietnam from Wednesday to Thursday, but also to persistent weakness in demand and growing uncertainty over price direction.

A trader reported that most buyers concluded deals in the previous week and are now staying away from the market due to the holiday break. “Market is very quiet this week. Besides the holiday, players don’t want to make fresh purchases amid expectations that prices may fall further,” he said.

Another Vietnamese trader agreed that demand remains weak, adding that many buyers are only replenishing in small volumes or choosing to stay on the sidelines. “No one wants to overstock. Buyers are worried that prices haven’t hit the bottom yet,” he noted.

Meanwhile, a source from a Qatari producer reported that they already sold out LDPE stock and are only offering HDPE this week. “We dropped our HDPE film offers by around $30/ton compared to last week. Our new levels are at $900-910/ton CIF Vietnam,” the source said.