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NewsSSESSMENTS: Despite Unclear Outlook, Continuous Adjustment On Localized PE Offers In Vietnam Prompted Buyers To Make Procurement


Despite the unclear outlook, SSESSMENTS.COM noted that the continuous adjustment on localized PE offers in Vietnam has prompted buyers to make procurement. Considering the current uptrend in PE prices, a converter decided to secure 200 tons of localized Saudi LLDPE Film C4 cargoes at VND22,200,000/ton ($951/ton) which is VND300,000/ton ($13/ton) lower than the initial offer level as an anticipation of higher prices onwards. A local trader also reported that the trader’s offers for localized Saudi LLDPE Film C4 increased by VND500,000/ton ($21/ton) from last week and managed to achieve deals at the initial offer level at VND23,500,000/ton ($1,006/ton). All offers on cash, FD basis, and including 10% VAT. Despite the sufficient inventory on hand, another local converter revealed its plan to purchase some volume of localized Saudi LLDPE Film C4 cargoes citing that LLDPE Film packaging demand is still ongoing while resins price is still considered attractive below VND23,000,000/ton-level. 

Although the buying sentiment has slightly improved, market sources opined to SSESSMENTS.COM that localized Saudi LLDPE Film C4 offers above VND23,000,000/ton-level will most likely be deemed unworkable as the actual demand for finished products remains slow. A local converter revealed that the company is still holding around 70 tons of finished products. While for localized Saudi HDPE Film cargoes, sellers expect to get materials at VND23,000,000/ton ($985/ton) which is stable from last week as the demand for the grade is slowest among other PE grades. Sources also voiced out sell ideas for localized South Korean LDPE Film cargoes at VND26,000,000-26,200,000/ton ($1,114-1,122/ton). All offers on cash, FD basis, and including 10% VAT.  

Pertaining to the outlook, market sources opined that the possibility for localized PE offers to increase further is thin as players believe that the price already reached its peak. Moreover, digestion rate for finished products remains slow. However, other sources stated to SSESSMENTS.COM that market movement will be difficult to predict, hence, they will only monitor the market movement and follow the trend. 

Localized PE offers on cash, FD basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
ThailandHDPE Blow MouldingOffer Given24,000,000934Haiphong
Saudi ArabiaHDPE FilmOffer Given23,000,000895Ho Chi Minh
ThailandHDPE FilmSell Idea26,500,000-27,000,0001,012-1,051Haiphong
South KoreaLDPE FilmSell Idea26,000,000-26,200,0001,012-1,020Haiphong
ThailandLDPE FilmOffer Given26,000,000-27,000,0001,012-1,051Haiphong
Saudi ArabiaLLDPE Film C4Offer Given23,000,000895Ho Chi Minh
Saudi ArabiaLLDPE Film C4Offer Received22,500,000-22,800,000876-887Ho Chi Minh
Saudi ArabiaLLDPE Film C4Purchased22,200,000864Ho Chi Minh
Saudi ArabiaLLDPE Film C4Offer Given23,500,000914Haiphong
Saudi ArabiaLLDPE Film C4Sold23,500,000914Haiphong

Tags: Asia Pacific,English,News,PE,SEA,Vietnam

Published on June 25, 2020 6:16 PM (GMT+8)
Last Updated on June 25, 2020 6:16 PM (GMT+8)