Import LLDPE film to Vietnam softened

Vietnamese players this week reported to have concluded deals for LLPDE film from various origins at below the $1200/ton threshold, as persistent weak demand forced sellers to loosen stance on the cargoes. Near term outlook appears to be soft given reducing upstream costs and the need to deplete inventories ahead of the year-end book closing.

Couple of deals for Thailand LLDPE film observed earlier this week in the range $1150-1160/ton CIF Vietnam, LC AS term. Though there are strong arguments that these special deals are meant as compensation for seriously delayed cargoes, market is just shaken up. “Customers are loosing confidence and become very cautious about fresh buy. The resistance is higher now,” an international trader said.

At the meantime, Saudi LLDPE film reportedly concluded at $1180/ton FCA Vietnam, LC AS term – a $20/ton drop from initial offers. A buyer informed, “There are some requirement on the minimum purchased quantity, however we are running low on inventories and must make replenishment. This could be the beginning of the down trend and we might buy again in the coming month if more discount emerge.”

International suppliers have also raised the intention to offer lower prices for November shipment in light of weaker upstream costs and pressure to deplete inventories ahead of the year-end book closing. “Despite the on-going shutdown, we are not confident that LLDPE film could achieve prices near the $1200/ton mark. If ethylene costs drop further, pressure on the PE market is immense. We have regular allocation for LLDPE film this month,” a Middle Eastern producer said.

While buyers are expecting lower offers for November shipment, many also believed that firm HDPE film prices might support LLDPE film to a certain extent, in which no drastic fall is in the picture at the moment.