Print

After three consecutive months of firming up due to limited availability, import LLDPE film offers to Vietnam this week has shown some signs of loosing steam as most suppliers find it difficult to increase prices further, some even offer discounts.

Players informed about an apparent improved supply condition, especially from Middle Eastern supplier, in addition with stagnant ethylene costs, buyers simply adopt a more cautious stance in making purchases. A buyer receive Middle Eastern LLDPE film offer at $1180/ton CIF Vietnam, LC AS term said, “This offer indicates $20/ton reduction from last month. We might consider purchasing a small quantity as it seem Southeast Asian supply might remain tight given the recent production switches.”

A distributor sold Saudi Arabia LLDPE film cargoes at $1200/ton at the same term informed, “Our principal supplier is now operating at near to full rate and it is true that our monthly allocation has improved notably. The question is would this be sufficient to cover the production loses in Southeast Asia market? The peak demand season is just about the start, for this we think the PE market might sustain the stable trend throughout the coming month.”

Another buyer cautiously commented, “We feel the risk is piling up as our supplier constantly re-open offers over the past couple of weeks. Local market is slow; in fact, traders are offering some discounts to encourage purchases. We prefer to monitor further movement before committing to any cargoes.” Other buyers also reported purchased Korean LLDPE film at $15/ton discount from initial offers at $1205/ton CIF Vietnam, LC AS term.

Import LLDPE film to Vietnam currently stands at $1180-1220/ton CIF Vietnam, LC AS term.