Vietnamese traders: Local HDPE film market looses momentum

The HDPE film in local Vietnam market has been following the firming trend over the past two weeks on the back of tight availability for certain Saudi Arabia cargoes, which account for an increase of VND500,000-700,000/ton ($22-31/ton) on an average. However, Vietnamese traders started seeing difficulties in implementing further hike this week, as market resistance built up.

A trader sold Saudi’s HDPE film at VND30,000,000/ton ($1200/ton without VAT) FD Vietnam, cash term said, “We attempted to lift our offer by another VND200,000/ton ($9/ton), yet unable to conclude any deal. We think that the firming trend is loosing steam and prices might only follow the stable track in the near term.”

A converter received offers for Middle Eastern HDPE film at VND30,200,000/ton ($1209/ton without VAT) FD Vietnam added, “We have replenished sufficient material since last week to cover production need till end of May. This trend might only be temporary as demand normally slow down from May to July. Market shall be more balance.”

Several other converters added that end product demand is not picking up, in which many decided to slow down on purchasing activities as current local offers are too high. On the other side, traders have not expressed any intention to offer discounts amid strong upstream costs and lack of sales pressure.

Local HDPE film offers in Vietnam on the first trading day of the week stand at VND30,000,000-30,200,000/ton ($1200-1209/ton without VAT) FD Vietnam, cash term.