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According to Vietnamese players, Indian suppliers appear to be very aggressive this week in directing LLDPE film cargoes to the country with offers emerged at below $1050/ton benchmark. This is blamed to keep the general sentiment low, which likely to prevent active buying in this market.

A buyer received the offer at $1040/ton CIF Vietnam, LC AS term said, “We are placing bids at $1020/ton and currently waiting for the supplier feedback. We were hoping that the import PE market has reached the bottom, however, with competitive Indian materials, prices might stay low for longer.”

Other buyers are expressing similar concern over the near term market prospect with a local trader added, “We received offers for Mi 1 LLDPE film cargoes at $1030/ton CIF Vietnam term, yet we did not proceed any further. Supply for LLDPE film seems comfortable and we might temporarily suspend all replenishment activities to monitor further development.”

India welcomes at least four new PE plants in 2016 and 2017, adding a total 2.68 million tons to the market. At the current consumption rate, the country has some extra quantity to export. “Local demand in India is hampered by the implementation of GST. Most traders are not willing to keep materials, instead, putting on full gear to deplete inventories, exacerbating the pressure on the market. We are attempting to divert some cargoes to South Africa too,” an Indian producer commented.

Indian LLDPE film offers to Vietnam currently stand at $1030-1060/ton CIF, LC AS term, which is lower than prices in China for the same origin.