Chinese PP and PE Offers Climb Above $1,400/ton in Vietnam as Buyers Hold Back

Chinese suppliers have returned to Vietnam’s polypropylene (PP) and polyethylene (PE) markets after the National Day holiday with substantial price increases, raising offers by around $100/ton or more in a week. Homo-PP raffia and key PE film grades are now being quoted at $1,400/ton and above, supported by higher production costs, limited availability and firmer domestic prices in China.

However, Vietnamese buyers have questioned whether the latest increases are justified by current market conditions. With demand still weak and many converters holding sufficient inventories, the sharp rise in offers has not translated into stronger purchasing interest. China’s influence is particularly significant in PP, while Vietnam’s broader range of PE suppliers could offer buyers more alternatives.

Chinese PP Raffia Offers Return Above $1,400/ton

Chinese homo-PP raffia offers in Vietnam reached $1,400/ton CIF or higher on a cash basis this week, marking an increase of approximately $100/ton from the previous week. This is the first time offers have returned to this level since March 2026, when similar quotations appeared briefly.

The latest increase comes after PP prices had already risen considerably over the preceding three months, making buyers increasingly cautious about further gains.

Chinese suppliers have also raised PE offers sharply. HDPE film was reported at around $1,420/ton CIF Vietnam, up by at least $100/ton week on week, while LLDPE film offers were heard at $1,400/ton or higher.

The increases reflect elevated feedstock and energy costs, restricted supply and stronger domestic pricing in China. Following the holiday, gains in Dalian PP and LLDPE futures reinforced the bullish sentiment, with the upward movement continuing into the current week. Signs of improving domestic demand have also encouraged Chinese sellers to seek better prices rather than prioritize export volumes.

Nevertheless, these quotations represent sellers’ asking prices, and it remains unclear whether Vietnamese buyers will accept the higher levels.

Heavy Reliance on Chinese PP Makes Further Increases Significant

China’s pricing strategy carries considerable weight in Vietnam’s PP market because of its large share of the country’s imports.

According to ChemOrbis Stats Wizard data, China supplied approximately 42% of Vietnam’s total PP imports in the first half of 2026, ranking as the country’s largest supplier. South Korea followed with a 20% share.

With Chinese offers rising rapidly, Vietnamese buyers may find it more difficult to secure competitively priced PP unless other suppliers maintain lower quotations.

South Korean offers will therefore be important in determining the next market direction. If Korean suppliers follow China’s increases, import PP prices could move higher more broadly. However, more competitive Korean offers could limit the scope for further gains and provide buyers with an alternative source.

For now, the extent to which China’s higher offers will influence the wider Vietnamese market remains uncertain.

Multiple PE Supply Sources May Limit China’s Pricing Influence

Vietnam’s PE import market has a more diversified supply structure than PP, potentially reducing the impact of increases from any single origin.

ChemOrbis Stats Wizard data identify Saudi Arabia, the United States, China, South Korea and Thailand as Vietnam’s five largest PE suppliers in the first half of 2026. Together, they accounted for approximately 72% of the country’s total PE imports.

China ranked third, suggesting that its pricing decisions may have less influence on PE than on PP. Buyers could compare higher Chinese HDPE and LLDPE film offers with material from the Middle East, the US and other Asian suppliers before making new purchasing commitments.

The availability and pricing of these alternative cargoes will help determine whether Chinese increases spread across Vietnam’s PE market or remain concentrated among particular origins and grades.

Vietnamese Buyers Remain Reluctant to Accept Higher Offers

Market feedback indicates that the latest price increases have met resistance from Vietnamese converters and traders.

One converter reported widespread increases in offers but considered the latest adjustments excessive under current market conditions. With inventories sufficient, the buyer preferred to delay purchases until the market direction becomes clearer, potentially returning next week.

A local trader also highlighted the difficulty of making purchasing decisions amid rapid price fluctuations. Considering current offers too high, the trader has been buying only to meet immediate requirements, while customers have reduced their booking volumes.

Another converter confirmed that both domestic and imported PP offers had increased but said existing stocks removed the need for additional purchases for now. The buyer has therefore adopted a wait-and-see approach.

These responses suggest that the sharp rise in Chinese offers has not yet encouraged stronger buying activity. Instead, buyers are prioritizing inventory management and delaying commitments while assessing whether the higher prices can be sustained.

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