Domestic PP and PE prices in Vietnam inched lower

Vietnamese traders reported on the second trading day of the week cutting domestic homo-PP and LLDPE film offers by approximate VND200,000-300,000/ton ($9-13/ton) compared to last week amid raising local supply. However, demand is reported to be slower despite the price cut.

A trader offered locally held Saudi’s homo-PP at 25,900,000/ton ($1055/ton without VAT) based on FD Vietnam, cash term informed, “We only managed to sell a small quantity to regular customer today. Local traders are psychologically affected by falling crude oil and also due to large arrival of previously purchased cargoes, therefore everyone prefer to deplete stock.”

Another trader added, “We are not confident about the PP market despite strong buying in China. We have not replenished any cargoes recently since we have comfortable stock on hand. We prefer to only focus on selling now.”

Even LLDPE film supply also appears to be loosened in the country and prices turn south quickly after a brief increase in the previous week. On an average, local LLDPE film currently traded at VND30,200,000-30,400,000/ton ($1230-1240/ton without VAT), FD Vietnam, cash term. A market source informed, “We think LLDPE and HDPE film might remain largely stable in the near term as demand is not as strong as expected, yet healthy purchasing interest in China might provide support. In addition, supply for LLDPE film is not as amble as PP for now.”