Vietnamese traders: Improved demand, tight supply boost local HDPE film prices

Local traders in Vietnam reported seeing better buying interest for HDPE film in domestic market, which support firmer offers in the recent trading days. On an average, locally held HDPE film cargoes gained VND400,000/ton ($18/ton) week on week basis to reach VND29,800,000-30,000,000/ton ($1195-1204/ton without VAT), FD Vietnam, cash term.

A trader said, “Many of our regular buyers have return to make purchases in the past couple of days after seeing import offers surge significantly compared to the pre-holiday period. Even with the recent increases local market poses, import offers at the moment are still way higher. Hence, we think domestic ground still need to catch up.”

Another trader added, “We plan to lift local HDPE film offers further in the coming days considering the hike seen in international ground. In fact, import offers below the $1200/ton threshold are mostly disappeared in the market. Meanwhile, local market is very tight in supply.”

Most suppliers, including those in both local and overseas market are claiming lack of availability, which is a result of a series production issues. Besides, the rally in ethylene costs is also providing some support to the market. Players therefore, are expecting for further hike in the near term.