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Vietnamese players today reported seeing some discounts on local offers for both PP and PE compared to last week on the back of easing supply concern and diminishing buying interest. On an average, prices based on delivered term edge down VND200,000-300,000/ton ($9-13/ton) week on week basis, players said.

A trader commented, “Market is very quiet as buyers are loosing confident in the near term outlook after a heavy inflow of re-export cargoes from China. Buyers simply suspended their purchasing activities to monitor further development in the regional market before making decision. Therefore, we decided to offer some discount to encourage purchasing activities.”

Another trader lowers Middle Eastern homo-PP by VND200,000/ton ($9/ton) said, “Market is slowing down and we think a correction might take place in the near term. As reduction reported on import material, local prices are likely to follow. Besides, domestic supply is easing after a brief period of tightening. We prefer to monitor market respond further before commit to any additional price cut.”

Despite such bearish outlook among players, the general expectation is that market might not experience any hard landing considering the current supply condition. “We think that the sentiment is mainly affected by the strong presence of re-export material. Buying activities might improve once the number of these cargoes diminishes,” another trader added.