The global plastics supply chain is changing as the US-China trade war intensifies, and Vietnam’s plastic resin end-users are poised to benefit. While Vietnam is already a manufacturing hub for plastic finished goods due to its low labor costs and business-friendly environment, the recent trade war between global giants is providing an additional boost as key resin costs decline. US polyethylene, which was slapped with a tariff by China in the opening shots of the trade war, is now heading to Vietnam at a rate of around 20,000 mt/month, up from 3,000 mt/month in 2017, according to distributors. The Chinese tariff on US PE was part of a $110 billion retaliatory tariffs package imposed in response to the US’ $250 billion tariffs on Chinese products. As the industry gathered in Ho Chi Minh City for VietnamPlas 2018 in October, the impact of the trade war was just beginning to be felt. Vietnam-based polymer traders with extensive local distribution channels were the first to take advantage of cheap US PE. Nguyen Dang Quang, General Manager Middle East of OPEC Plastics “We now buy direct from US [producers] such as Dow Chemicals, Westlake Chemicals, Chevron Philip, LyondellBasell US, and others. Chinese companies… continue reading
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Source: CTRM Center