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Domestic PE prices in Vietnam have been following firming trend over the past week a mid stronger energy and upstream values. While LLDPE film showed sign of stagnating, Vietnamese buyers continue seeing addition hike in HDPE film offers this week. In fact, locally HDPE film cargoes in local market has reached VND29,800,000-30,000,000/ton ($1190-1200/ton without VAT), FD Vietnam, cash term.

Attributed to such robust sentiment, traders claimed to have limited supply on hand in the lack of import arrival. “The HDPE market were holding weak position for a prolong period of time, which discouraged traders to replenish cargoes. Domestic market therefore suffer from tight availability at the moment.” The condition is worsen after Saudi’s Sabic encountered unexpected technical issues at two of its HDPE line, deterring smooth supply to the market.

A converter purchased locally held Saudi’s HDPE film at VND30,000,000/ton ($1200/ton without VAT) FD Vietnam said, “We placed bid at VND200,000/ton ($9/ton) discount, however the supplier refused to accept. Supply is tight in local market for now.”

In contrary, many players fear that this condition might not last long as the traditional slow demand season is just around the corner. “We are attempting to implement additional hike on our availale parcels, however buyers are not accepting. Room for further price increment seems getting narrower.”