Vietnam PE Trade Stays Quiet as High-Priced China Re-Exports Struggle to Find Buyers

Vietnam's polyethylene (PE) import market remains subdued as Chinese-origin material and re-exported Middle Eastern cargoes continue to circulate, but trading activity has yet to gain traction. Although offer prices have eased slightly from last week following softer commodity values, sellers continue to quote a wide range of prices in an effort to test buyer interest amid improving regional sentiment. However, weak demand continues to limit market activity.

Chinese suppliers are still offering LDPE, LLDPE, and re-exported Middle Eastern PE cargoes at relatively elevated levels despite recent price adjustments. Large variations between suppliers indicate differing pricing strategies, with some offers approaching the levels of direct Middle Eastern cargoes. Market participants believe many of these quotations are intended to gauge buyers' counter-offers rather than secure immediate sales, as sellers appear willing to negotiate.

Current pricing has made it difficult for buyers to accept new offers. Several Chinese and re-exported cargoes are being quoted close to the initial August price targets announced by major Middle Eastern producers, even though those suppliers eventually concluded business at noticeably lower levels after facing strong buyer resistance. This has reduced the competitiveness of Chinese re-export cargoes and raised doubts about their ability to secure transactions.

Buying interest across Vietnam remains weak as processors continue to purchase only essential volumes. Traders reported that uncertainty over future price direction has encouraged most buyers to delay replenishment, expecting additional price corrections. While import offers have softened modestly compared to a week earlier, purchasing activity has shown little improvement.

Domestic PE prices have remained relatively stable due to limited local availability, but this has not been enough to revive overall market sentiment. Market participants continue to monitor regional price movements closely, with most preferring to wait for clearer market direction before committing to larger purchases.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.