More re-export cargoes flow from Vietnam to China

Since early August 2017, Vietnamese traders have been very active in re-exporting PE to China for a vast margin as demand in local market persistently weak. With import offers to China constantly moving higher over the past week, netback is becoming even better, attracting great attention from Vietnamese supliers.

Today, Chinese players continue to received a re-export offers for HDPE only from a Vietnamese seller for about 575 tons of blow molding and 800 tons of film grades at the price range $1215-1260/ton CFR China main port, LC 90 days term.

Buyers have not responded immediately to the offers with intention to take a little more time to evaluate the recent trend. “Most other suppliers have implemented large hike this week and with the tight supply condition, it is likely that prices might extent the firming trend. We plan to negotiate with the Vietnamese seller before closing some deals.”

Meanwhile, there is almost a panic situation in domestic Vietnam market today as traders lifted local offers several times in light of better re-export opportunities to China. “We have to accept $25/ton hike within a day for locally held Saudi Arabia PE cargoes as traders are holding back on the quanity. China market is magnetising all the materials, which might lead to serious drying supply in Vietnam. We need to stock up some quantity within this week.”