Vietnamese buyers: Off-spec USA LLDPE film substitutes the shortage of recycled materials

Over the past several weeks, Vietnamese buyers have been very active in off-taking off-spec LLDPE film cargoes originated from the USA at the price range $1040-1060/ton CIF, LC AS term. Sources reported that these cargoes would definitely act as a replacement for the recycled materials in the local ground, which has been facing shortage due to changes in regulations. 

In fact, the Vietnamese government has suspended the import of plastic scraps from 10 June to 30 September this year fearing that the country would become a dumping ground for foreign plastics waste after China announced changes in policies that restrict the import of plastic scraps. In July, the Vietnamese government suspended issuing new import licenses for plastics scraps while re-verifying the existing licenses. Such development bottlenecked the inputs for Vietnamese recyclers and curb outputs.

“We have bought more than 2000 tons of USA LLDPE film cargoes both prime and off-grade cargoes over the past two weeks. These cargoes are more competitive than recycled materials at the moment,” a buyer commented.

“We have collectedly purchased more than 1000 tons of USA cargoes, both prime and off-grade. At the moment, this is the next best solution to the shortage of recycled materials. Environmental regulations might only continue to tighten in the future, and therefore, we are actively seeking for the alternative,” another converter added.

Availability for USA LLDPE film cargoes is lower this week, as most suppliers have depleted a good quantity. “However, we do not expect the trade tension between China and the USA to be resolved anytime so soon, which mean, USA suppliers might continue to pay attention to Vietnam in the near term, especially during the year-end period,” a source added.