Vietnam’s import HDPE film market hits $900 mark for first time in 2 years

Participants in Vietnam’s import PE markets reported that HDPE film prices were quoted $30-40/ton lower compared to last week, with competitive US offers dampening the low end of price ranges further. While this marked the second straight week of declines in the market, the low end of the overall range hit the $900/ton threshold, a level last seen in late October 2022.

The HDPE film price range is currently at $900-950/ton on a CIF Vietnam, cash basis, while the US range is being quoted at $900-920/ton. According to the ChemOrbis Price Index, the weekly average of prices has hit more than two-year lows. Meanwhile, some players indicated that deals for US HDPE film at $890/ton CIF could also be achievable.

Bearish sentiment dominates

Players attributed the falling prices to a combination of bearish factors, including cautious buying, reduced offers, and weak demand.

“Buyers prefer to keep their inventories low amidst uncertainties about customs duties that will be applied by the US and the possible influx of Chinese end-products into Southeast Asia after the implementation of these taxes, as well as after the capacity expansions within the country, which will in turn heat the competition in the region,” commented a source from a Malaysian producer. “Despite the attractive pricing of US-origin cargoes, buyers are wary of product quality and extended lead times,” added the source.