- Import PE offers captured on a downtrend following softer crude oil prices and slow demand
- Suppliers expect to face shipment issues amid Coronavirus outbreak
- Sluggish PE demand anticipated to spillover to the following month
During March, SSESSMENTS.COM’s data showed that deals for Saudi HDPE Film and LLDPE Film cargoes were achieved between $10-20/ton lower from the initial offers. However, on the week commencing March 16, limited transactions recorded as the fears of Coronavirus coupled with a drop in oil prices dragged down buying sentiment in the Vietnam market. For the week commencing March 23, some producers decided to lower PE offers due to softer crude oil prices and slow demand amid the Coronavirus outbreak. April shipment offers for HDPE Film, LDPE Film, and LLDPE Film C4 from the leading Saudi polyolefins producer surfaced in the Vietnam market with a reduction between $50-90/ton compared to March shipment, with cargoes to be shipped from Malaysia and Singapore port.
As for other grades, in the first week of March, import US HDPE Blow Moulding to Vietnam at $850/ton on LC at sight, CIF Vietnam Main Port basis was deemed too high. While buyers submitted bids for Indian HDPE Yarn at $110/ton lower than the initial offers at $730/ton on the same payment and delivery term on the week commencing March 16. However, considering low crude oil and feedstock prices, market players opined to SESSMENTS.COM that bids at $700/ton-level for PE cargoes were reasonable.
Overall demand in the Vietnam PE market was bearish during March. Buying sentiment eroded due to a significant drop in crude oil prices coupled with the slow digestion of finished products. Moreover, buyers prefer to halt procurements and monitor the market situation in anticipation of lower PE prices. On the supply side, PE supply in Vietnam remains ample at the end of March. However, foreign suppliers expect to face shipment issues as most Southeast Asian countries have declared a state of emergency or lockdown over the outbreak, SSESSMENTS.COM was told.
Looking ahead, Vietnamese market players opined to SSESSMENTS.COM that sluggish PE demand is expected to persist considering the current situation. As such, PE prices will continue on a downtrend in the days to come.
Transactions for import PE between March 9 to March 13 on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Blow Moulding | Offer Given | 840 |
| North America | HDPE Blow Moulding | Bid Received | 740 |
| North America | HDPE Blow Moulding | Sell Idea | 800 |
| Middle East | HDPE Film | Offer Given | 830 |
| Middle East | HDPE Film | Offer Received | 810-820 |
| Middle East | HDPE Film | Purchased | 810 |
| Southeast Asia | HDPE Yarn | Offer Given | 890 |
| Middle East | LDPE Film | Offer Given | 950 |
| Middle East | LDPE Film | Sold | 950 |
| Middle East | LLDPE Film C4 | Offer Given | 850 |
| Middle East | LLDPE Film C4 | Offer Received | 830 |
| Middle East | LLDPE Film C4 | Purchased | 830 |
| North America | LLDPE Film C4 | Offer Given | 800 |
| North America | LLDPE Film C4 | Sold | 800 |
Transactions for import PE between March 16 to March 20 on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Indian Subcontinent | HDPE Film | Offer Received | 820 |
| Middle East | HDPE Film | Offer Given | 830 |
| Middle East | HDPE Film | Sold | 830 |
| Indian Subcontinent | HDPE Yarn | Bid Given | 730 |
| Indian Subcontinent | HDPE Yarn | Offer Given | 820 |
| Indian Subcontinent | HDPE Yarn | Offer Received | 840 |
| Middle East | LDPE Film | Offer Given | 930 |
| Middle East | LDPE Film | Sold | 930 |
| Middle East | LDPE Film | Bid Received | 870 |
| Southeast Asia | LDPE Film | Sold | 1,000-1,010 |
| Indian Subcontinent | LLDPE Film C4 | Offer Given | 810 |
Range of export PET Bottle offers between March 23 to March 27 on LC at sight, FOB China basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 690-715 |
| China | Offer Received | 680 |
| China | Sell Idea | 685-710 |
| China | Sold | 680-690 |
Transactions for import PE between March 23 to March 27 on CIF/CFR Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| North America | HDPE Blow Moulding | Offer Given | 750 | LC at sight |
| North America | HDPE Blow Moulding | Bid Received | 680 | LC at sight |
| Far East Asia | HDPE Film | Offer Received | 780 | LC at sight |
| Middle East | HDPE Film | Offer Received | 730*-830** | LC at sight |
| North America | HDPE Film | Offer Received | 780 | LC at sight |
| Southeast Asia | HDPE Film | Offer Given | 840-850 | LC at sight |
| Indian Subcontinent | HDPE Yarn | Offer Received | 800 | LC 90 days |
| Indian Subcontinent | HDPE Yarn | Offer Given | 820 | LC at sight |
| Middle East | LDPE Film | Offer Given | 900 | LC at sight |
| Middle East | LDPE Film | Offer Received | 900** | LC at sight |
| Middle East | LDPE Film | Purchased | 900** | LC at sight |
| Southeast Asia | LDPE Film | Offer Given | 940-960 | LC at sight |
| Southeast Asia | LDPE Film | Sold | 960 | LC at sight |
| Middle East | LLDPE Film C4 | Offer Given | 810 | LC at sight |
| Middle East | LLDPE Film C4 | Offer Received | 830*-850** | LC at sight |
| Southeast Asia | LLDPE Film C4 | Offer Given | 840-850 | LC at sight |
| Indian Subcontinent | LLDPE Film C4 | Offer Given | 810 | LC at sight |
| North America | LLDPE Film C4 | Offer Given | 780 | LC at sight |
| North America | mLLDPE C6 | Offer Received | 1,05 | LC at sight |
| Southeast Asia | mLLDPE C6 | Offer Received | 1,05 | LC at sight |
Transactions for import PE between March 30 to March 31 on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Film | Offer Received | 730*-770 |
| Middle East | HDPE Film | Purchased | 710* |
| Middle East | HDPE Film | Buy Idea | 650 |
| North America | HDPE Film | Offer Received | 730-750 |
| Southeast Asia | HDPE Film | Offer Received | 820 |
| Indian Subcontinent | HDPE Yarn | Offer Received | 780 |
| Middle East | LLDPE Film C4 | Offer Received | 780 |
Description: *Shipment from Malaysia and Singapore
Tags: Asia Pacific,English,Monthly,PE,SEA,Vietnam
Published on April 2, 2020 10:36 AM (GMT+8)
Last Updated on April 2, 2020 10:36 AM (GMT+8)
