Vietnamese Market Players: Mixed Views On PE Pricing Outlook
- Shipment for import PE cargoes from the US to Vietnam delayed
- Allocation from a Thai PE producer remains limited
- Vietnam PE market faces a mixed pricing outlook
Market players contacted by SSESSMENTS.COM shared a mixed pricing outlook for the Vietnam PE market. Vietnam’s domestic PE prices have marched relentlessly upward over the last two months, buoyed by firmer energy markets. Over the week, some traders maintained their high prices quotes to the domestic market in line with the uptrend in the import market. Besides, most companies have suffered pandemic-related losses in April and May, hence, most of them are inclined to earn more profit. This week, some traders were attempting to raise their localized LDPE Film from Malaysia, Thailand, and Saudi between VND1,000,000-1,500,000/ton ($43-64/ton) from last week’s levels. In contrast, another trader maintained a stable offer level for localized Saudi and South Korean LLDPE Film C4 cargoes from a week earlier as the company marked up prices higher than other local traders last week.
Vietnam’s import PE prices captured on a stable to firmer trend. For Middle Eastern origin, the leading Saudi polyolefins producer and a Kuwaiti producer opted to roll over offers for HDPE Film and LLDPE Film C4 from a week earlier. In contrast, another Saudi producer adjusted up offers for HDPE Blow Moulding by $40/ton, while offers for LDPE Film went up by $10/ton as compared to the same period. As for Southeast Asia origin, a Malaysian polyolefins producer has sold out July shipment PE allocation to Southeast Asia market. For Thailand cargoes, some buyers received import LLDPE Film C4 offers from a Thai PE producer at $50/ton higher than the offer level available in late May. This week, a Turkish producer found difficulties in selling LDPE Film cargoes as customers are still expecting prices below $900/ton-level.
The Vietnamese government is actively taking tentative steps to chalk out an economic revival strategy after the country had successfully flattened the Covid-19 curve. On June 8, Vietnam’s National Assembly has ratified a significant trade deal with the European Union in a move to boost the nation’s manufacturing sector and exports potential, as it recovers from the impact of the coronavirus pandemic. The deal is expected to take effect as early as August 2020. Still, Vietnam PE market is likely to continue to be hit, even after the peak of the pandemic passes. The global spread of the deadly virus has continued to cause a significant drop in demand for end-products in the export destination countries as many are still on the upswing of pandemic. In the domestic market, converters have started securing some lots in anticipation of further price increase, while others are taking a halt on procurement activities as prices have been moving higher rapidly. As the country has lifted some of their restrictions, some manufacturers took action to get the production back on track, even some already running at full capacity. On the supply side, SSSSMENTS.COM was informed that a Thai PE producer is running on low LDPE Film allocations for the Vietnam market. Market talks have it that shipment for import HDPE Injection cargoes from the US to Vietnam will be delayed for around 2-4 weeks.
Looking ahead, Vietnamese market players voiced out to SSESSMENTS.COM that the uptrend in PE prices will be short-lived as end-products demand has not been too forthcoming. However, some sources expressed that both localized and import prices would remain stable to even firmer in the near term as supported by high crude oil and feedstock prices.
Localized PE offers on cash, FD basis (including 10% VAT in VND term and excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| Saudi | LDPE Film | Offer Given | 27,300,000-27,500,000* | 1,061-1,069 | Ho Chi Minh |
| Malaysia | LDPE Film | Offer Given | 27,500,000* | 1,069 | Ho Chi Minh |
| Thailand | LDPE Film | Offer Given | 26,500,000*-27,000,000* | 1,030-1,050 | Ho Chi Minh |
| Saudi | LLDPE Film C4 | Offer Received | 23,000,000 | 894 | Ho Chi Minh |
| Saudi | LLDPE Film C4 | Offer Given | 23,000,000 | 894 | Haiphong |
| Saudi | LLDPE Film C4 | Sell Idea | 23,300,000 | 906 | Haiphong |
| South Korea | LLDPE Film C4 | Offer Given | 23,000,000 | 894 | Haiphong |
Description: *Offers for June delivery
Import PE offers on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | HDPE Blow Moulding | Offer Received | 830*-840* |
| Middle East | HDPE Film | Offer Received | 820-870** |
| Southeast Asia | HDPE Film | Offer Received | 820-860 |
| Indian Subcontinent | HDPE Yarn | Offer Received | 850* |
| Central & East Europe | LDPE Film | Offer Given | 960-970 |
| Middle East | LDPE Film | Offer Received | 920* |
| Southeast Asia | LDPE Film | Offer Received | 980* |
| Middle East | LLDPE Film C4 | Offer Received | 840**-850 |
| North America | LLDPE Film C4 | Offer Received | 840 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 860-880 |
Description: *Offers for July shipment **Shipment from Singapore
Tags: Asia Pacific,English,PE,SEA,Vietnam,Weekly
Published on June 18, 2020 3:01 PM (GMT+8)
Last Updated on June 18, 2020 6:36 PM (GMT+8)
