Local LLDPE film and homo-PP extended firming trend, supply tightened

As reported earlier this week, domestic traders in Vietnam are putting enormous effort to push locally held PP and PE offers up, considering the recent upsurge in the import ground. Apparently, local prices, especially for LLDPE film and homo-PP are firming up on daily basis, and till today, domestic offers has jumped an average of VND1,000,000/ton ($44/ton) within a week.

Latest price range stand at VND30,200,000-31,000,000/ton ($1208-1240/ton without VAT) for LLDPE film and at VND29,700,000-31,000,000/ton ($1188-1240/ton without VAT) for homo-PP yarn and injection, all based on FD Vietnam, including VAT, cash term.

Buyers are slowly accepting the hike, concerning the risk that supply might be short in the coming week. A flexible packaging converter purchased the locally held Saudi Arabia LLDPE film at VND30,200,000/ton after obtaining VND200,000/ton ($9/ton) discount. The source said, “We only have 15 days worth of stock and therefore we have to make replenishment though prices are too high. We have asked several other suppliers and very few have material on hand.”

A trader offer Saudi homo-PP injection at VND31,000,000/ton, FD Vietnam, cash term informed, “Homo-PP yarn demand is much weaker and therefore we have only been able to achieved higher prices for injection grade. Demand is still not strong, however supply is flowing to China, leaving very few cargoes in Southeast Asia. We are holding back some quantity fearing that local market might become short in the near term.”

Buyers are very cautious complaining that prices are too high while traders are showing no intention to drop prices. In contrast, many decided to hold back on the cargoes, believing that room for further increment is still available in the coming week.