Re-export PE from China emerged in Vietnam

As the import PE market in China is under pressure of competitive Iranian cargoes; Vietnamese buyers on the first trading day of the week reported receiving couple of offers for re-export PE cargoes from China. Vietnamese buyers are very cautious about making purchases, especially for prompt cargoes amid plunging ethylene market.

The offers consist of Kuwait LLDPE film at $1120/ton and UAE LDPE film at $1220/ton, CIF Vietnam, LC AS term, prompt shipment from China. An international trader selling direct UAE LDPE film cargoes to Vietnam said, “We are offering the same cargoes, ship direct from Singapore at $50/ton higher than this re-export material. The downtrend is so contagious and we think buyers would withdraw further to the sideline now.”

A buyer receive the offers commented, “There is just so much of uncertainties at the moment, especially for PE, considering the upstream market condition. We prefer to take conservative stance over the near term.”