A Vietnamese trader informed SSESSMENTS.COM on the adjustment on PE offers from the trader’s end as the pricing strategy amid the current market situation in the country. Compared to last week, the trader increased localized offers for LDPE Film of several origins between VND1,000,000-1,500,000/ton ($42-64/ton). Localized Thai LDPE Film offers stand at VND27,000,000/ton ($1,155/ton) on cash, FD Ho Chi Minh basis and including 10% VAT. While offers for localized LDPE Film of Malaysia and Saudi origin stand between VND27,300,000-27,500,000/ton ($1,168-1,176/ton) on the same payment and delivery term. These offers got rejected outright by buyers citing that localized LDPE Film offers from other traders are available at lower levels, around VND25,000,000/ton-level. However, despite the buyer’s response, the trader stated that the increment is the company’s pricing strategy since the sooner the adjustment applied the sooner buyers will learn to accept high prices.
In the import market, July shipment offers for HDPE Blow Moulding from Saudi and LDPE Film from Malaysia increased by $40/ton and between $30-40/ton, respectively on the weekly comparison. However, the trader is still reluctant to take import cargoes on the back of concern to sell at a loss, if by the time of cargoes arrival, PE prices move downward. Demand-wise, PE demand at the trader’s end is considered healthy compared to the past few weeks. However, the overall domestic digestion rate could not be categorized as strong yet since most market players currently on wait-and-see stance. Despite the unclear situation, the trader opined that the uptrend in PE prices would not sustain due to the slow demand for the finished products, as stated to SSESSMENTS.COM.
