Import HDPE film to Vietnam quickens the downtrend on costs and demand

Looking at the import HDPE film to Vietnam, the market has been losing momentum since mid-May 2018 despite the increasingly tightening regulations on plastic scrap import that strain the availability of the recycled cargoes. However, the downtrend quickens this week and more suppliers become more willing to offer prices below the $1200/ton threshold. 

In fact, a deal for Thailand HDPE film is recorded at $1160/ton CIF Vietnam, LC AS, and shipment to arrive by end of December. “The quantity is only two containers, however, that is enough to shackle up the already fragile market. Customers put more restraint on new purchases now,” a market source commented.

In the meantime, international traders are collecting bid for Saudi Arabia HDPE film at $1180/ton; however, bids are aggressively coming in at below the $1150/ton threshold. Market has established a new benchmark for the deep-sea cargoes.

The reduction though yields no little concern among buyers, it is much in line with the expectation. As reported earlier, Vietnamese buyers have been calling for lower HDPE film prices to narrow down the price gap with LLDPE film, which has been standing at above $100/ton over the past couple of months.

“The PE market is running by the Bear. We are not seeing much support for any major rebound anytime soon,” a local trader said while adding the tighten environmental inspection at small to medium size HDPE bag factories that somewhat discourages buyers from keeping high stock. 

At the moment, buyers are mostly waiting on the sideline hoping to see new offers for Middle Eastern origin at below the $1150/ton mark.