Vietnam’s local PP stalls after brief uptick; PE drags lower under persistent oversupply

Vietnam’s local PP and PE markets remained subdued during the week ending November 14. PP prices steadied after a brief uptick from more than two-year lows, while PE extended its multi-month slide with no signs of reversal since early September. PP fared slightly better thanks to temporary supply tightening, but overall sentiment across both polymers stayed soft amid sluggish demand and persistent year-end caution.

PP stalls after short-lived rise; PE locked in prolonged downtrend

The local PP market began November with a modest rebound — its first since mid-June — but the recovery was short-lived. Buying interest was thin, causing prices to level off as buyers remained largely on the sidelines.

PE, meanwhile, continued to face firm downward pressure. Locally held materials, particularly US and Russian origins, were offered aggressively, preventing any stabilization. ChemOrbis Price Index data shows LDPE film slipping to its lowest level since April 2024, LLDPE film hovering near a two-year low, and HDPE film retreating to a five-month low.

A converter commented, “PE prices remain quite low. We heard higher offers for PP grades, but PE offers stayed largely unchanged, and in some cases softer. This likely reflects persistent oversupply in PE, pushing sellers to lower prices to clear inventories.”

Supply situation more supportive for PP; PE remains weighed by excess stocks

Despite the broader oversupply in the polyolefin market, some divergence emerged between PP and PE. For PP, several local turnarounds tightened availability and somewhat prevented additional price declines. According to ChemOrbis Supply Wizard, Hyosung Corporation has shut its 300,000 tons/year PP plant since late October, and Nghi Son’s 400,000 tons/year PP unit has been offline for maintenance throughout November.

A local trader noted, “Nghi Son has been undergoing turnaround maintenance from early November to the end of the month, reducing this month’s supply by around 1,000 tons.” Even so, she expected no meaningful uptrend given lackluster demand and ample overall supply.

PE, by contrast, continued to feel the weight of a supply glut. According to market sources, locally held materials were abundant and offered at increasingly aggressive levels, particularly for US and Russian origins.

Buying appetite remains unhealthy for both polyolefins

Demand conditions remained broadly disappointing across Vietnam’s domestic polyolefin landscape. While some stocking activities occurred, purchasing interest remained sporadic and insufficient to shift the overall market tone across PP and PE segments.

Market players repeatedly described purchasing sentiment as cautious and risk averse. “Most players are in wait-and-see mode,” said a trader. Another noted that demand was “in bad shape” and PE remained “under a soft note,” prompting him to stay on the sidelines.

Buyers widely preferred to purchase strictly on a need basis, citing weak end-user orders and the uncertain economic environment. “End-user consumption is weak because of the fragile economy and the rainy season,” a converter opined. Another converter added, “Demand for year-end improved somewhat, but it is still lower than expectations.”