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Domestic PE market in Vietnam has been facing sluggish condition over the past weeks as converters refused to accept higher prices amid weak end product businesses. On the first trading day of the week, with the absence of Chinese and South Korean players, Vietnamese traders started taking softer stance to deplete cargoes.

There have not been any significant cuts in prices; however, traders are becoming more open to negotiation. This is due to the fear that ethylene costs would continue to fall while local supply is building up with a good number of previously purchased cargoes at much lower costs arriving. “It does appear that ethylene market is due for a correction and the recent drop is just the beginning. We planned to give some discounts, including for those cargoes arriving next week,” a trader said.

Another trader added, “Demand is very slow and price reduction has been taking place below market surface. Buyers are taking a step back waiting for further reduction to take place with the arrival of lower costs cargoes. We concern that traders might have to concede to real price cut to conclude deals.”

Meanwhile, traders with capability, decided to hold back on the cargoes, hoping that strong post-holiday replenishment in China would help to revive the sentiment. “At the meantime, we are waiting for better prices to restock. We think the softening trend might not be too long as market is entering the traditional high demand season. The window is short,” a buyer added.

Domestic LLDPE film current stand at VND29,800,000-30,000,000/ton ($1192-1200/ton without VAT), FD Vietnam, cash term while HDPE film is at VND29,400,000-29,700,000/ton ($1176-1188/ton without VAT) with the same term.