HDPE film market decline across Asia on soft demand, improved supply condition

The import HDPE film market in Asia has plunged to its lowest level in 2018 as a result of persistent sluggish demand condition combined with the apparently improved supply condition. 

Compared to the final week of August, the average import HDPE film price based on CIF Vietnam has dropped more than $55/ton and CFR China value dropped $40/ton. Apparently, cargoes priced above the $1300/ton threshold are now facing tremendous difficulty in attracting deals.

Today, major Taiwanese maker stepped back on HDPE film prices by as much as $35/ton from last week to close deals at $1290/ton CFR China, LC AS term. More than 1000 tons of the cargoes have been sold at the price range $1290-1300/ton depending on the payment term. 

In Vietnam, Middle Eastern cargoes are available in the range $1270-1280/ton while irregular Nigeria HDPE film cargoes emerged at below $1250/ton threshold on the first trading day of the week.

Players fear that the downtrend might persist in the coming weeks considering the current supply-demand dynamic. “The effect from the plastic waste ban is fading. Supply is improving week by week,” a Southeast Asian source commented.

There have been market talks that the plunge in HDPE pipe prices as demand for this grade from Chinese buyer dimmed has encouraged producers to switch back to film grade, leading to more availability. “Our concern is that would HDPE market return to where it used to be – below the $1200/ton threshold,” a Vietnamese trader added. 

Looking from the demand side, export-oriented HDPE bags maker in Vietnam are enjoying the high demand season with many are operating at full rate to meet quantity requirement. “Local market is very weak. With the current exchange rate, we merely make any profit buying from the import market,” a domestic-oriented converter said.

The escalated trade war between China and the USA has limited demand to a certain extent, though not large. Many Chinese converters are returning to focus on the local ground, especially for the up-coming Single day sales. 

Market is now monitoring the potential impact of the recent adjustment in import tariff schedule in the USA that zero-rated the duties for hundred of plastic end products. The regulations only revert the tariffs before the trade war, which means many countries besides China would have benefited from the better opportunity to export to the USA.