A Vietnamese converter updated SSESSMENTS.COM on securing import PE and PP cargoes as anticipation of a rebound in crude oil prices. The converter purchased HDPE Film from the leading Saudi polyolefins producer at the initial offer level at $700-710/ton on LC at sight, CIF Vietnam Main Port basis. This offer is $20-30/ton lower compared to last week. The converter also bought LLDPE Film C4 from the same producer at the initial offer level, $740-750/ton on LC at sight, CIF Vietnam Main Port basis. Both cargoes are ready at Singapore and Malaysia bonded warehouses. Additionally, the converter also concluded deals with a US producer for LLDPE Film C4 at $710-720/ton and HDPE Blow Moulding at $690-700/ton, both on LC at sight, CIF Vietnam Main Port basis, and cargoes will be shipped directly from the US. The converter decided to take some volume in the act of anticipation for higher polymers prices if crude oil prices rebound. Additionally, the converter’s finished product sales to the export market remain good.
For PP, the converter received import offers from a Thai PP producer at $750/ton this week and submitted bids at $720/ton but the deals were closed at the initial offer level. As SSESSMENTS.COM noted, all transactions are on LC at sight, CIF Vietnam Main Port basis. Additionally, one of the leading Chinese polyolefins producers is also offering PP Homo Raffia at $820/ton on the same payment and delivery term, but the converter skipped procurements since the price surged by $40/ton from last week.
In the production sector, the converter informed SSESSMENTS.COM regarding their factories which are still running at 90-95% rate at the moment. The converter also reported that their export sales for the end products remain healthy. However, some small factories in Vietnam that are selling to the domestic market have halted their operations due to Coronavirus lockdown. In terms of outlook, the market is unpredictable, thus the converter does not want to speculate.
