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.
