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Overseas suppliers this week reported to have achieved satisfactory number of deals concluded for homo-PP yarn in Vietnam despite many players are away for ChinaPlas event. Buyers in the country were initially concerned about the market outlook in June citing the start of the fasting month that could encourage sellers to deplete on hand inventories and depress prices. However, sentiment quickly changed, in line with firmer energy and upstream costs.

A major Thailand producer reported to have sold nearly 3500 tons of homo-PP yarn to Vietnam over the past two days at prices $1055-1060/ton CIF Vietnam, LC AS term, a $10-15/ton reduction compared to last week. “Converters are picking up larger quantity this time on perceived bottom prices. We only have a small remaining cargo at the moment and might sold out within this week,” a producer source informed.

An international trader sold 600 tons of Singaporean homo-PP yarn at $1060/ton CIF Vietnam earlier this week added, “We sold out the available quantity very soon after open offers. We are currently requesting for additional quantity from principal supplier since some of our regular customers are still sending in purchase inquiries.”

Several converters have brought up the discussion that import homo-PP to Vietnam is very near to the bottom and that room for further reduction is very limited. “This is especially when propylene costs firm up and lack of availability from Middle Eastern and Indian suppliers. We have stocked up sufficient inventories for three months now,” a converter said.

Another market source added, “We have already procures a small quantity this week and might buy again in the coming week. With better purchase appetite among Vietnamese buyers, we think that market might regain some strength in the near term, though significant hike might less likely to take place.” The source also explained that demand in Muslim markets might fade during the fasting month while it is still uncertain about the sustainably of the recent firming trend in local China market. These factors might downplay seller’s effort in elevating market beyond the medium range.   

Supply for certain Saudi’s homo-PP yarn grade in local Vietnam market is reported to be tight at the moment, yet buyers do not seem very attracted to Middle Eastern cargoes. With the upcoming maintenance shutdown at PetroVietnam’s 150,000 tons/year PP line starting 5 June, local traders are hoping to see continued improving buying interest.

Import homo-PP to Vietnam this week stand at $1010-1095/ton CIF Vietnam, LC AS term.