Vietnamese Traders: Deals For PE Cargoes Remained Scarce Despite Number Of Inquiries Increased
- Localized South Korean LLDPE Film C4 cargoes recorded a notable adjustment
- Buying sentiment is better than last week
- Market players predict that import prices will increase in the upcoming weeks
Vietnamese traders contacted by SSESSMENTS.COM stated that deals for PE cargoes this week remained scarce despite the number of inquiries increased. For the week commencing May 4, a converter received fresh localized offers for LLDPE Film C4 of South Korea origin with a downward adjustment of VND700,000/ton ($30/ton) compared to the previous deals for April delivery. As the offer is considered quite attractive, the converter plans to purchase the cargoes with buy idea at VND20,300,000-20,500,000/ton ($863-871/ton) on cash, FD Haiphong basis and including 10% VAT. In the import market, offers for PE cargoes across different grades from the leading Saudi polyolefins producer were mostly stable, except for LLDPE Film C4 which surfaced with a reduction of $10/ton from a week earlier. Meanwhile, deals for Kuwaiti LLDPE Film C4 concluded at $690/ton on LC at sight, CIF Vietnam Main Port basis.
From another Saudi producer, May shipment offers for LLDPE Film C4 and HDPE Film cargoes increased by $20/ton compared to April. Whereas for LDPE Film, the offers stood at $840/ton, but no comparison available since the producer skipped offering this grade last month. At the same time, import offers for HDPE Film, LDPE Film, and LLDPE Film C4 of Thailand origin remained stable from last week’s level. Additionally, a converter informed SSESSMENTS.COM on receiving import offers for mLLDPE C6 of US and Singapore origin at $980/ton. In comparison to last week’s level, the offers dropped by $30/ton. All offers are on LC at sight, CIF Vietnam Main Port basis.
In general, buying sentiment in Vietnam’s PE market this week is better than last week. Many customers are actively submitting inquiries to traders. However, the number of deals remains limited so far. One of the traders assumed that most customers are only checking the prices while monitoring the market development. From the converters' side, demand for essential products such as food packaging and plastic bags is also improving following the social distancing relaxation. On the supply front, no significant issues reported to SSESSMENTS.COM this week.
In the upcoming weeks, some traders expect that the market will continue to improve and there will be more deals concluded. For pricing outlook, market players opined to SSESSMENTS.COM that import Middle Eastern PE cargoes will increase in the upcoming weeks as the suppliers are intentionally kept production at lower rate to get better profit margin. In the meantime, prices for US cargoes are expected to be stable to fluctuate around $20-30/ton from the current levels.
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