Vietnam’s import PP market hits multi-year lows, PE stays under US-origin pressure

Vietnam’s PP and PE markets remained on a weak footing over the week ending September 12, as sellers issued fresh discounts to stimulate sluggish demand. Despite limited supply in HDPE and LDPE film, the abundance of competitively priced imports, particularly from the US, continued to weigh on sentiment.

Heating competition in import PPH market

A Saudi Arabian homo-PP raffia shipment changed hands at $850/ton CIF, while most offers from the Middle East, ASEAN, South Korea, and China clustered in the $850-855/ton range during the week. These pricings created an unusually tight spread that heightened competition among suppliers. Notably, Chinese origins, typically positioned at the low end of the market, were no longer the only ones undercutting rivals, underscoring the depth of weakness across the global PP supply chain.

Import homo-PP inj. prices also fell sharply by $50/ton on the week, slipping to $840/ton CIF cash—their lowest since May 2020, according to ChemOrbis Price Index. A deal for Malaysian-origin homo-PP injection was reported at this level, reinforcing the bearish tone across the segment.

“Demand is fragile. We think prices could come under more pressure and fall further, especially with the economy and politics both not in good shape. For now, we just replenish on a need basis and keep inventories low,” said a trader.

PE imports under pressure from US cargoes

US-origin cargoes continued to dominate the PE market, with LLDPE film hit hardest. Offers touched $870/ton CIF, cash—the lowest in five years, according to ChemOrbis Price Index data.

A converter confirmed, “US LLDPE offers dropped sharply. We placed a bid at $850/ton, and it seems the seller may accept. However, the cargo was packed in loose bags under a trader’s name rather than the producer’s brand, which partly explains the discount against producer-branded material.”

Meanwhile, market players reported limited LDPE availability, but the tightness was insufficient to offset bearish sentiment, with prices staying on hiatus for the past four weeks.

FX fails to provide support to local offers

The continuous depreciation of the VND has inflated the cost of imported PP and PE cargoes, further discouraging buying interest. Converters noted that the currency shift made imports significantly more expensive, prompting them to stay cautious and purchase only to cover immediate needs.

“Demand for our end products remains relatively stable, and prices are holding steady. But with the VND weakening sharply, import cargoes have become much more expensive. As a result, we prefer to purchase only on a need basis to mitigate risks from currency fluctuations,” a PP bag manufacturer based in Hung Yen remarked.

In the domestic market, however, the weaker VND did not translate into stronger local prices, as subdued demand left sellers with little room to pass on higher costs. Another trader remarked, “VND depreciated, but local prices are still under a soft note. Buyers are waiting, expecting further declines.” This highlighted how weak consumption and bearish sentiment continued to outweigh cost-driven pressures, keeping both PP and PE markets under strain despite currency movements.

Long Son’s return faces quality complaints

The return of Long Son to the domestic market reportedly confronted quality complaints, undermining its competitiveness despite attractive price points. A trader based in Ho Chi Minh City shared, “While many buyers had previously preferred to wait for Long Son cargoes instead of importing, the decline in quality has prompted a shift toward locally-held materials of other origins. Nonetheless, Long Son’s LLDPE offers remain highly competitive, standing around VND1,000,000-1,500,000/ton ($38-57/ton) lower than other sources.”