Local LLDPE film in Vietnam continue to soften

Vietnamese players this week reported that several local traders continue to cut domestic LLDPE film offers in anticipation of further reduction on import cargoes in the near term. Compared to last week, domestic LLDPE film in Vietnam has dropped by approximate VND300,000-500,000/ton ($13-22/ton).

A buyer received offers for locally held Taiwanese LLDPE film at VND28,300,000/ton ($1132/ton without VAT), FD Vietnam, cash term said, “We purchased one container of this material in the previous week at VND500,000/ton ($22/ton) higher. Traders are loosing confident on the near term market outlook, hence racing to cut offers. In contrast, HDPE film is still doing fine.”

Another converter received offers for Saudi LLDPE film at VND29,000,000/ton ($1160/ton without VAT) with the same delivery term added, “It is likely that import offers would fall below the $1100/ton threshold, hence we are not planning to make large purchases at the moment.”

It appears that the general sentiment is badly affected by weak energy complex and softening import ground. Many fear that local market might extend the falling trend in the near term amid bloated domestic supply. It is heard that domestic Vietnam market might need up to three months to digest the current inventories.