Import HDPE film to Vietnam continue to breach below $1200/ton threshold

Since Vietnamese players returned from the Lunar New Year holidays, import HDPE film to the country has been escalating to above the $1200/ton threshold, and hovering around the $1230-1240/ton range on an average over the past four weeks. However, buyers are showing strong resistance toward this price levels, despite tight supply in the local ground. In addition to the availability of re-export material from China, buyers are loosing confident in the near term outlook, withdrawing to the side-line to monitor further development before making decision.

Late last week, deals for Saudi’s HDPE film were reported at $1180/ton CIF Vietnam, LS AS term, which was $70/ton below the initial offers. This has triggered more concern and caution among Vietnamese buyers. Today, a major Thailand producer offered HDPE film at $1230/ton CIF Vietnam LC AS term informed, “Our customers are mostly placing bid at the range $1180-1190/ton with the same term claiming softening trend in place. Our plant is regaining normal operation rate, therefore we might need to step back on the hike target.” Couple of deals for this origin are reported at $1190/ton CIF Vietnam later, breaching below the $1200/ton mark for the first time in nearly a month.

Uzbekistan’s HDPE film also received discount of $15/ton week on week basis to reach $1190/ton CIF Vietnam today, with a buyer commented, “We think the down trend has just started, therefore we plan to hold purchases a little longer before making decision.”

The mounting pressure in the nearby China market is casting spill-over effect on the general sentiment in Vietnam with re-export offers are getting more competitive. A Qingdao based trader offered Indian’s HDPE film at $1140-1150/ton CIF Vietnam, from China bonded warehouse said, “We are open to negotiation with serious buyers. We have yet to received feedback from the customer’s side, however we hope to attract some buying interest as we think this offer is very competitive.”

Import HDPE film to Vietnam currently stand at $1140-1265/ton CIF Vietnam, LC AS term. With the large gap between the upper end and the lower end of the overall price range, players believed that the upper range might face tremendous downward pressure in the coming days.