Vietnam market just got some boosts for homo-PP, LLDPE film

Demand for import cargoes in Vietnam has been sloppy since players returned from the Lunar New Year holiday as players were watching out for the market condition in the nearby China market. As a result, overseas suppliers have constantly reducing PP and PE offers to the country since February.

However, demand started to pick up this week following a strong recovery in purchasing interest since late March China in. Buyers have accepted prices, which faced rigid resistance previously. A major Saudi Arabia producer claimed to have sold all available quantity of homo-PP yarn at $1240/ton CIF Vietnam, LC AS term while Indian homo-PP increased $15/ton from last week to $1250/ton. “There are very limited offers in the market. We have comfortable stock until the end of May, hence might monitor the sustainability of the current trend before making any major decision,” a converter said.

While import HDPE and LLDPE film are still facing difficulties in gathering a rebound, Vietnamese buyers are scouting for Saudi LLDPE film at $1140-1150/ton CIF, LC AS term.  A good number of customers contacted by CommoPlast claimed to have purchased the cargoes believing that market is nearing the bottom and prices are heading for stabilization. “We have sold out all available quantity of PE this week and currently in discussion with our principal Saudi supplier to obtain additional quantity. Though there are signs that market is regaining strength, we might prefer not to commit to too high inventories,” an international trader said.

Other traders have also claimed achieving satisfactory sales for Middle Eastern HDPE and LLDPE film cargoes, which encourage ambitious sellers to plan small to moderate hike in the coming week. A trader said, “We have withdrawn all offers for Kuwait HDPE film at $1310/ton CIF Vietnam term and plan some increases in the next offering considering the firmer trend in China this week.”

From another aspect, buyers believed that market might not have enough support for any strong rebound, as May and June are traditionally slow demand season. “Besides, we do expect to see more quantity, especially PE, from Middle Eastern suppliers in the coming weeks as suppliers might in the action to reduce inventories ahead of the long Ramadan celebration,” a buyer commented.

As a result, it does appear that market has risen above the cyclical bottom; however, buyers are not in the state to accept any drastic increases.