Attractive margins encourage re-export LLDPE film from Vietnam

Domestic Vietnam market has been persistently under pressure of weak demand, preventing prices to firm up despite a notable rebound in the import ground and strong upstream costs. This week, Vietnamese traders started to re-export LLDPE film to Hong Kong at relatively competitive prices. However, it is very selective in term of grade.

A trader earlier this week reported to have sold some Saudi LLDPE film based on re-export term at $1150/ton to Hong Kong said, “This is a good sign and we think market just has another support for additional hike in the near term. Domestic Vietnam is weak and everyone is on the watch out for better demand condition as the traditional high demand season starts.”

Another trader said to have sold 500 tons of Saudi LLDPE film based on re-export term to Hong Kong today at $1180/ton added, “There are still more inquiries, however we are not having more cargoes at the moment. Outlook is bright and we hope that local ground could catch up.”

Several other local traders also reported to have received similar inquiries for Saudi LLDPE film to be re-exported to Hong Kong, however, most prefer to hold the remaining cargoes, hoping domestic market would catch up in the coming days.