LDPE film re-exported from Vietnam to China

Surging LDPE film prices in China has attracted not only overseas producers but also regional traders, who are seeking to maximize profit margins by allocating their cargoes to China instead of domestic market. In fact, several LDPE film cargoes from various origins have been re-exported from Vietnam to China, players reported.

A Chinese trader purchased Saudi Arabia’s LDPE film at $1290-1300/ton CFR China, re-exported from Vietnam said, “We also received offers for Malaysian LDPE film at $1360/ton with the same term, but decided to go for the lower costs cargoes. Demand for LDPE film in China is still very strong and the current supply tightness might only be eased by mid-November. We think this condition might attract more re-export cargoes in the coming week.”

A Vietnam trader added, “We received a good number of purchase enquiries from Chinese buyers for LDPE film to be re-exported from Vietnam. However, we only have small quantity available to supply to local buyers.”

Import LDPE film to China currently stands at $1220-1420/ton CFR China, LC 0-90 days term.