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WeeklySSESSMENTS: Vietnam PE Prices Week Starting July 6


Demand Condition Predicted To Persist, Vietnamese Trader Plans To Adjust Localized PE Prices

  • No fresh offers for import Thai PE cargoes captured due to supply shortage
  • Buying sentiment for PE in Vietnam remains weak
  • A trader plans to adjust down localized PE prices in the upcoming week 

As informed to SSESSMENTS.COM, a Vietnamese trader plans to adjust localized PE prices as weak demand conditions are predicted to persist. Localized PE offers in Vietnam captured stable this week. In the domestic market, a local converter received stable offers from last week for localized Saudi HDPE Film and LLDPE Film C4 at VND24,200,000-24,500,000/ton ($1,040-1,053/ton) and VND23,500,000/ton ($1,010/ton) respectively on cash, FD Ho Chi Minh basis and including 10% VAT. While a trader sold localized Singaporean HDPE Blow Moulding at VND24,500,000/ton ($1,053/ton) on the same payment and delivery terms. 

For the import market, import PE offers via traders mostly remain stable from last week following the stagnant market. South Korean HDPE Film cargoes are available at $900/ton. At the time of publication, no deals concluded yet. While offers for LLDPE Film C4 from the leading Saudi polyolefins producer increased by $10/ton compared to last week. A converter preferred to skip procurements for these cargoes as the offers were deemed too high. As for import PE offers from a Thai producer, no fresh offers captured due to the limited supply at the producer’s end. For deals, a trader managed to close deals for Saudi HDPE Film at $10/ton lower than the initial offer level at $920/ton. While deals for LLDPE Film C4 cargoes from the same origin concluded at $20/ton lower than initial level at $910/ton. These cargoes will be shipped from Singapore. Meanwhile, a global trading house does not have any fresh PE offers to the Vietnam market this week. However, the trader mentioned that buy ideas from buyers are around $860-870/ton for Middle Eastern HDPE Film and LLDPE Film C4, which are much lower than prices available in the market. For mLLDPE C6 of US origin, a converter received the offers at $50/ton higher on the monthly comparison. More added, a trader stated that the shipment for Saudi HDPE Blow Moulding purchased on June 11 will be delayed for two weeks due to the hurricane, SSESSMENTS.COM was told. All import offers are on LC at sight, CIF Vietnam Main Port basis.

Buying sentiment for PE in Vietnam remains weak over the week. Buyers currently on a wait-and-see stance due to the unpredictable market. Moreover, the rainy season has dampened buying sentiment even more. A trader stated that the number of deals concluded at the company’s end for this week declined by around 50% from last week. Likewise, SSESSMENTS.COM noted, no improvement was seen for finished product demand. Despite the fear of the second wave of the Coronavirus outbreak, demand for medical masks and protective wear remains stable so far. On the supply side, market sources reported a shortage of supply for HDPE Film.

Vietnamese market players believe that import PE prices will be stable to softer in the near term considering the drop in feedstock prices and demand condition. While a trader plans to adjust down localized PE prices in the upcoming week as weak demand is predicted to persist, however, the trader is still not sure about the amount of decrement, as stated to SSESSMENTS.COM.

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

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/ton
SingaporeHDPE Blow MouldingSold24,500,000957
SaudiHDPE FilmOffer Received24,200,000-24,500,000945-957
SaudiLDPE FilmOffer Received25,000,000-27,000,000976-1054
SaudiLLDPE Film C4Offer Given23,500,000-24,000,000918-937
SaudiLLDPE Film C4Offer Received23,500,000-24,000,000918-937

Import PE offers on LC at sight, CIF/CIP Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Southeast AsiaHDPE Blow MouldingOffer Received920
Far East AsiaHDPE FilmOffer Given900
Middle EastHDPE FilmBuy Idea810*-870*
Middle EastHDPE FilmOffer Received900-920
Middle EastHDPE FilmSold920**
North AmericaHDPE FilmOffer Given930
Indian SubcontinentHDPE YarnOffer Received870
Middle EastLDPE FilmOffer Received960
Middle EastLDPE FilmPurchased960
Indian SubcontinentLLDPE Film C4Offer Received850
Middle EastLLDPE Film C4Buy Idea810*-870*
Middle EastLLDPE Film C4Offer Received910-940
Middle EastLLDPE Film C4Purchased850-920**
Middle EastLLDPE Film C4Sold870-910**
North AmericamLLDPE C6Offer Received1,060
Description: *Buy idea from buyers, **Shipment from Singapore

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

Published on July 9, 2020 1:39 PM (GMT+8)
Last Updated on July 9, 2020 1:39 PM (GMT+8)