Vietnam PE Film Prices Hit Record Highs as War-Driven Rally Intensifies

Vietnam’s polyethylene (PE) film market has surged to unprecedented levels as the Middle East conflict enters its second month.

What began as gradual price adjustments has quickly turned into a sharp rally, driven by supply disruptions, rising energy costs, and limited sourcing options. Market participants are now dealing with record prices amid ongoing uncertainty.

Domestic and Import Prices Climb Sharply

Domestic PE film prices recorded significant increases at the start of the week:

• Up by VND 1,000,000–3,000,000/ton

Import offers also rose sharply, increasing by $90–120/ton compared to the previous week, extending the upward trend seen since late February.

Over the past four to six weeks, price gains have been substantial across all major grades:

• LDPE film: up 68%
• HDPE film: up 47%
• LLDPE film: up 51%

These increases have pushed domestic prices for all key PE film grades to all-time highs. Notably, discounts have disappeared entirely in recent months, highlighting strong upward momentum.

Import Market Reaches Multi-Year Highs

Import prices have followed a similar trajectory, rising steadily over the past several weeks:

• LDPE film imports: up 47%
• HDPE and LLDPE imports: up around 51%

LDPE and LLDPE prices have returned to levels last seen in 2022, while HDPE film has climbed to its highest point in nearly eight years.

Rising Costs and Supply Issues Drive Market

The rally is being fueled by a sharp increase in production and logistics costs.

Energy prices remain elevated, while ethylene costs have surged significantly within a short period, putting strong pressure on producers. As a result, suppliers have either raised prices aggressively or reduced offers.

Ongoing logistics disruptions, including freight volatility and shipping delays linked to the Strait of Hormuz situation, have further tightened supply conditions.

Buyers Struggle as Demand Weakens

Despite rising prices, downstream demand has not kept pace.

Converters report difficulty in passing on higher resin costs to end-users, leading to weak purchasing activity. Many buyers consider current price levels unsustainable and are delaying purchases.

Some market participants have indicated that operations may be reduced or temporarily halted if conditions do not improve. Purchasing decisions are increasingly dependent on whether downstream customers accept higher finished product prices.

Market Outlook

While supply constraints and cost pressures continue to support high prices, growing resistance from buyers may challenge the sustainability of the rally.

If demand remains weak, the market could face increased volatility in the coming weeks despite ongoing supply tightness.

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