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WeeklySSESSMENTS: Vietnam PE Prices Week Starting June 8

Author: SSESSMENTS

Most Vietnamese Buyers Undeterred By Recent PE Price Adjustments As Inventory Has Been Secured 

  • Localized LDPE Film offers to Vietnam were adjusted significantly
  • Buyers are showing resistance towards the current offers
  • Sales for the end products are expected to decline in the upcoming weeks due to the rainy season

SSESSMENTS.COM noted that most Vietnamese buyers were undeterred by the recent PE price adjustments as the inventory has been secured previously. However, there are also some buyers that regretted not stocking up when prices have not significantly increased yet. This week, offers for localized LDPE Film from Malaysia were recorded at VND1,000,000/ton ($43/ton) higher than last week. Meanwhile, upward adjustments applied on offers for localized LDPE Film from a Saudi producer were more significant, by VND1,200,000/ton ($51/ton) due to limited availability. From the import market, import HDPE Pipe (PE 100) from a Thai producer increased by $30/ton. Offers for HDPE Film from India and LLDPE Film C4 with limited allocation from Saudi were adjusted up by $40/ton. Offer for the two products from the US also went up between $20-40/ton. All were on a weekly comparison. On a monthly comparison, HDPE Film and LDPE Film offers from a Malaysian producer for July shipment surfaced with an increment of $50/ton and $10/on, respectively. Likewise, offers for LDPE Film from a Thai producer were adjusted up by $40 while offers for LLDPE Film C4 by $60/ton. Although most suppliers are having limited allocation, market players opined that the fair prices for HDPE Film and LLDPE Film C4 should be between $850-870/ton on LC at sight, CIF Vietnam main port basis.

Demand for PE in Vietnam is not yet strong. Buyers are showing resistance towards high offers as most are having sufficient inventory from previous procurements. A big converter in the country even has secured materials for production needs that would last for 2 months since two weeks ago. The converter also had purchased materials for 4 months of production when PE prices were quite low in April. As for the end-products, demand is still weak although week-by-week there are some increases seen. On the supply side, SSESSMENTS.COM was informed that the availability of localized and import PE across all grades in the Vietnam market is low.

Looking ahead, some market players opined to SSESSMENTS.COM that chances for further increases in localized and import PE prices in Vietnam are not high. Demand is not going to be able to support high prices as sales for the end-products are expected to decline in the upcoming weeks due to the rainy season. Some others believe that PE price movement in Vietnam will follow the trend in the China market.

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)
ThailandHDPE Blow MouldingSell Idea26,000,0001,012
SaudiHDPE FilmOffer Given23,000,000-23,500,000895-914
ThailandHDPE FilmOffer Received24,000,000934
USAHDPE FilmOffer Received20,500,000798
MalaysiaLDPE FilmOffer Given26,000,000-26,500,0001,012-1,031
SaudiLDPE FilmOffer Given27,000,0001,051

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

OriginProductTransaction TypeOffers (USD/ton)
Middle EastHDPE Blow MouldingOffer Received800
Middle EastHDPE Blow MouldingPurchased800
Southeast AsiaHDPE Blow MouldingOffer Received920
Southeast AsiaHDPE Blow MouldingBid Given860
Far East AsiaHDPE FilmOffer Given885
Far East AsiaHDPE FilmOffer Received885
Indian SubcontinentHDPE FilmOffer Received840
Middle EastHDPE FilmOffer Received870*
North AmericaHDPE FilmOffer Received800
Southeast AsiaHDPE FilmOffer Given900
Southeast AsiaHDPE FilmOffer Received830-860
Southeast AsiaHDPE FilmSell Idea850-870
Southeast AsiaHDPE Pipe (PE 100)Offer Received980
Far East AsiaHDPE YarnOffer Received895
Far East AsiaLDPE FilmOffer Received940
Middle EastLDPE FilmOffer Received910
Middle EastLDPE FilmPurchased910
Southeast AsiaLDPE FilmOffer Given930-940
Southeast AsiaLDPE FilmOffer Received910-970
Southeast AsiaLDPE FilmPurchased900
Middle EastLLDPE Film C4Offer Received840*
North AmericaLLDPE Film C4Offer Received800
Southeast AsiaLLDPE Film C4Offer Given900
Southeast AsiaLLDPE Film C4Offer Received860-920
Southeast AsiaLLDPE Film C4Sell Idea850-870
Description: *Shipped from Singapore

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

Published on June 11, 2020 2:21 PM (GMT+8)
Last Updated on June 11, 2020 3:07 PM (GMT+8)