USA LLDPE film reaches $1000/ton mark in Vietnam despite firmer ethylene costs

The Asian ethylene market regains some strength this week, surging $50-60/ton compared to late last week on improving replenishment activities in the nearby China market. However, there has not been any major impact on the downstream PE market, where deals for USA LLDPE film cargoes at $1000/ton CIF Vietnam put more pressure on the already fragile market.

A buyer said, “We thin ethylene has reached the bottom, therefore, proceed with some small purchases first. This price is competitive at the moment, just that the cargoes would only arrive by February.” 

In the meantime, other sources do now show strong confidence in the near-term outlook, fearing that the rebound in ethylene costs might be just temporary and lengthy LLDPE supply might push prices to below the $1000/ton mark in the near term. 

At the time this report is published, import LLDPE film to Vietnam is reported at $1000-1120/ton CIF, LC AS.