Local HDPE film market in Vietnam softened

After several weeks remaining on the stable to firmer trend on the back of limited supply, local suppliers started to offer some discount on HDPE film cargoes as demand receded. On an average, locally held HDPE film prices has dropped about VND200,000/ton ($9/ton) week on week basis reaching the range VND29,500,000-30,000,000/ton ($1180-1200/ton without VAT).

Players are blaming the weakening trend observed in the import ground and plunging energy market to be the main factor affecting the general sentiment domestically. A trader commented, “Buyers are not showing as strong interest this week, partially due to sufficient replenishment and also hoping to see lower offers in the near term. We are not keeping high inventories, hence not facing strong sales pressure.”

Many converters are complaining about mediocre end product demand, from which smaller than usual replenishment is required. A HDPE bags converter said, “We are still having orders for end product, though it is traditional slow season, hence the condition is a little slow. We have stocked up material until mid-June and not in rush to buy more in coming days.”

Firming ethylene costs have not provided sufficient support to the PE market in general as slow demand overshadowed the cost-push. Vietnamese buyers are mostly expecting further reduction in the near term.