A global trading house unveiled to SSESSMENTS.COM the impact of strict social distancing on the domestic PE market in Vietnam. As of Tuesday, the Vietnam government has announced strict social distancing to prevent the spreading of Coronavirus in the country. Citizens are obliged to stay at home for the next two weeks except for buying daily necessities or medicine. The trader stated that prominent impact will be seen on the converters’ side. The trader already received notices that customers are planning to shut the production during the strict social distancing as buyers will have no interest to buy anything unless essentials needs. While to the export market, the orders from the US and Europe have been cancelled as well following a spike in Coronavirus cases.
In terms of prices, the trader is offering HDPE Film and LLDPE Film C4 from a Saudi producer at $80/ton lower compared to last month. SSESSMENTS.COM was told that customers were submitting bids at $700/ton, which is $80/ton lower from the initial offer lever and deemed too low. Hence, there is no done deal concluded yet. While for LLDPE Film C4, done deals were achieved at $20/ton lower from the initial offer level at $770/ton. All offers on LC at sight, CIF Vietnam Main Port basis. The trader stated that the allocation for Saudi cargoes remains limited, as the producer’s plant still undergoing maintenance shutdown.
While for Thai HDPE Film cargoes, the offers decreased by $30/ton from last week. While for import LDPE Film offers of the same origin decreased by $50/ton from last month. So far, there is no deal concluded yet, SSESSMENTS.COM was told.
