Local PP and PE prices inched higher in Vietnam

As international suppliers responded to stronger energy and upstream costs by lifting their offers to the region; Vietnamese traders are also attempting to implement some hike on both local PP and PE prices this week.

Compared to last week, local offers for PE has firmed up in the range VND200,000-500,000/ton ($9-22/ton) though the number of deals concluded are still limited. A PE bags converters reported receiving locally held Saudi’s LLDPE film offers at VND30,200,000/ton ($1210/ton without VAT), FD Vietnam, cash term said, “Our supplier lifted prices, however we think this firming trend might not be sustainable. The main support this time is the energy market and several shutdowns. At the moment, we are having sufficient inventory till end of April, therefore we might wait and see on the sideline.”

Another converter added, “Our end product customers refused to place new orders while raw material prices are firming up. We plan to source a small quantity of LLDPE and HDPE film from local market then might continue to monitor further development. We are also analyzing the sustainability of the current trend in order to decide on our next purchases.”

Local homo-PP also firmed up VND200,000-300,000/ton ($9-13/ton) week on week basis with a trader offered Saudi cargoes at VND29,000,000- 29,200,000/ton ($1163-1170/ton without VAT) FD Vietnam, cash term said, “Buyers are actively asking for offers, however, many are still reluctant to make fresh purchases. With firmer stance from overseas suppliers, we believed that it is just matter of time that local buyers would proceed with replenishment.”  

Domestic LLDPE film currently stand at VND29,600,000-30,200,000/ton ($1185-1210/ton without VAT) FD Vietnam, cash term. Homo-PP offers stand at VND28,400,000-29,200,000/ton ($1140-1170/ton without VAT) with the same term.