Plastic processors in Vietnem affected by rising feedstock costs

25-Jul-05

Rising global oil price have triggered a price rise in feedstocks as well as petrochemicals in the domestic market in Vietnam, increased the input costs of producers. Volatile prices of materials have directly impacted producers who depend largely on imports from Thailand, South Korea, Taiwan, Singapore and the US. Fearing that they might lose customer loyalty, processors are under pressure to execute orders, despite the volatile costs of input materials. Though they have stabilised the market by accepting lower profits, many suppliers are withholding products from the market for selling later at higher profits.The Vietnamese plastic processing sector requires about 700,000 tpa of PE, 600,000 tpa of PP (Polypropylene), and 66,000 tpa of PS (Polystyrene). Domestically produced petrochemicals currently, meet only 30% of total demand.