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)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton) |
|---|
| Thailand | HDPE Blow Moulding | Sell Idea | 26,000,000 | 1,012 |
| Saudi | HDPE Film | Offer Given | 23,000,000-23,500,000 | 895-914 |
| Thailand | HDPE Film | Offer Received | 24,000,000 | 934 |
| USA | HDPE Film | Offer Received | 20,500,000 | 798 |
| Malaysia | LDPE Film | Offer Given | 26,000,000-26,500,000 | 1,012-1,031 |
| Saudi | LDPE Film | Offer Given | 27,000,000 | 1,051 |
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 | 800 |
| Middle East | HDPE Blow Moulding | Purchased | 800 |
| Southeast Asia | HDPE Blow Moulding | Offer Received | 920 |
| Southeast Asia | HDPE Blow Moulding | Bid Given | 860 |
| Far East Asia | HDPE Film | Offer Given | 885 |
| Far East Asia | HDPE Film | Offer Received | 885 |
| Indian Subcontinent | HDPE Film | Offer Received | 840 |
| Middle East | HDPE Film | Offer Received | 870* |
| North America | HDPE Film | Offer Received | 800 |
| Southeast Asia | HDPE Film | Offer Given | 900 |
| Southeast Asia | HDPE Film | Offer Received | 830-860 |
| Southeast Asia | HDPE Film | Sell Idea | 850-870 |
| Southeast Asia | HDPE Pipe (PE 100) | Offer Received | 980 |
| Far East Asia | HDPE Yarn | Offer Received | 895 |
| Far East Asia | LDPE Film | Offer Received | 940 |
| Middle East | LDPE Film | Offer Received | 910 |
| Middle East | LDPE Film | Purchased | 910 |
| Southeast Asia | LDPE Film | Offer Given | 930-940 |
| Southeast Asia | LDPE Film | Offer Received | 910-970 |
| Southeast Asia | LDPE Film | Purchased | 900 |
| Middle East | LLDPE Film C4 | Offer Received | 840* |
| North America | LLDPE Film C4 | Offer Received | 800 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 900 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 860-920 |
| Southeast Asia | LLDPE Film C4 | Sell Idea | 850-870 |
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)
