Vietnam's import PP and PE markets went up in the last week of March, supported by high costs. This is despite continued weak demand and current pressure from re-exports from China. However, sentiment leveled off in early April due to the re-emergence of competitively priced Russian goods.

A trader said he had received quotes for PPH raffia and HDPE film at $1,355/ton, and LLDPE film at $1,385/ton, both in CIF Vietnam, cash. “We have received some PP and PE quotes directly from Russia, they are not re-exports from China. However, payment and shipping need to be conducted by third parties, mainly through China due to sanctions against Russia.”

Payment and shipping of Russian goods through China

Another trader also said that the quotes they have received for Russian PP and PE are currently at 1355 USD/ton PPH raffia and HDPE film, 1385 USD/ton LLDPE film, 1380 USD/ton PPH nonwoven and 1345 USD. USD/ton PPH inj., all according to Vietnam CIF method, cash. These quotes are lower than the Middle East origin quote of 35 USD/ton LLDPE film and 45-65 USD/ton HDPE film.

This trader said: “Both domestic and imported PP and PE prices in Vietnam decreased by 20-30 USD/ton compared to last week. Russian goods are having a competitive advantage, and goods from Russia to Vietnam are shipped through China mainly because of sanctions against Russia following the military operation in Ukraine.

The PP, PE markets are already under pressure from China's exports/re-exports

Vietnam's polyolefin markets have been and are among the 'most preferred destinations' for Chinese suppliers to ease their supply pressure, due to weak demand conditions due to the new wave of Covid-19 best in this country.

There is a problem with shipping from China

Regarding the re-export quotes from China, the trader added: “Currently, there are a lot of re-export materials from China and they are priced 20-30 times lower than the regular origin. USD/ton. However, buyers are concerned about delivery delays when purchasing from China due to lack of vessels and containers.”

Quotations of PP originating in Korea also decreased

South Korean PP suppliers also made offers near the low end of the market this week, although they maintained their bullish stance in previous weeks despite the competitive stance of Chinese sellers. .

A report converter received a PPH quote raffia and inj. origin Korea at 1350 USD/ton CIF, cash and said: “A Korean producer has unexpectedly sharply reduced quotes this week because they want to free up inventory. But the market is still quiet, buyers just maintain a waiting and watching position.”

Demand remains weak for both PP and PE

Weak demand in regional markets due to higher inflationary pressures and rapidly changing energy prices have kept buyers cautious in their purchases. The calm during the month of Ramadan has also begun in Malaysia and Indonesia.

Regarding market conditions, traders also added: “Demand for HDPE and PP is much weaker than LDPE and LLDPE. Coupled with the slow post-Covid-19 recovery are high inflation rates and rising energy costs.”

Domestic PP slipped for two consecutive weeks in Vietnam

Despite the upward trend in the import PP markets, local PP prices in Vietnam fell last week mainly due to weak demand.