Local homo-PP, LLDPE film prices in Vietnam softened

Vietnamese players this week reported local traders are cutting homo-PP and LLDPE film prices as pressure from upstream and soft import market is piling up. On an average, domestic offers for these two grades dropped about VND300,000/ton ($13/ton) from last week, yet many are complaining about sluggish buying condition.

A medium scale trader offered locally held Saudi homo-PP at VND28,200,000/ton ($1130/ton without VAT), FD Vietnam, cash term said, “There is a strong sense of reluctant and since the week begins until now, we have not been able to sell 50 tons of material. As a result, we are not planning to make replenishment at the moment.”

Another seller offered good quality Saudi LLDPE film at VND29,300,000-29,500,000/ton ($1174-1182/ton without VAT), FD Vietnam, cash term added, “Depending on the quantity, we are willing to negotiate with buyers. Business is rather slow as it is slow season now. However, we hope that with ethylene prices stabilizing and the on going Middle East conflict, market could regain some strength soon.”

There is still dilemma amongst traders on whether to hold the remaining cargoes on hand despite a major Qatari producer has assured the market on the shipment. Players are assuming that certain Saudi Arabia cargoes might be tight as buyers across Saudi, UAE, Jordan Bahrain and Egypt might need to seek for alternative material after Qatari ships barred from these countries.