International sellers tested respond in Vietnam by lifting HDPE prices

Import HDPE to Vietnam has been falling since it hits the peak during Mid February 2017 on persistent weak buying interest. After a major Saudi Arabia producer implemented a steep reduction in the previous week, this week, couple of overseas suppliers started to take firmer stance on their cargoes.

Latest offers for Kuwait HDPE film indicated $10/ton increased compared to earlier this week while Iranian HDPE film jumped $20/ton to reach $1140/ton CIF Vietnam, LC AS term. An international trader said, “However, buyers are resisting very strongly towards the new prices, signaling the lack of fundamental support for firmer trend despite strong energy and ethylene costs.”

Besides, the lack of synchronization is also blamed for the lethargy outcome from seller’s effort to increase prices. In fact, a major supplier decided to step back on their offers for Saudi HDPE film by $15/ton from initial prices to conclude at $1115/ton CIF Vietnam, LC AS term.  Another trader added, “For this, buyers have more reason to believe that market is not set for a rebound, at least in the near term.”

Meanwhile, import offers for USA HDPE blow molding also increased $30/ton from earlier this month reaching $1090/ton CIF Vietnam term. The supplier is also facing similar difficulties to attract sales, “Yet we could not absorb the losses incurred, hence we might just maintain our prices throughout this week,” the source said.

Vietnamese buyers are still taking the side-line to analyze the impact of sturdier energy values on the market. The general sentiment is blanketed by a strong sense of caution with many prefer to monitor the sustainability of the recent come back in demand in China before taking position.