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Earlier this week, Chinese suppliers lifted coal based homo-PP prices to Vietnam by $10-20/ton on the back of strong futures trade that stimulated local demand in China. However, the up-trend is proved to be short lived, as persistent weak demand cast shadow on the market. Sellers therefore, decided to step back on their offers by approximate $15/ton to attract buyers.

A Chinese coal based PP producer adjusted export offers to $1035/ton FOB Tianjin port, LC AS term said, “Customer resisted our previous prices strongly while sentiment in local China is not that very healthy. We hope to conclude some deals at the new offer levels.”

Vietnamese buyers also reported receiving coal based PP offers from traders at $1065/ton CIF Vietnam, LC AS term with deals heard at $1055/ton. A market source commented, “Even regular cargoes from Philippines and South Korea are also offered at similar levels, which makes coal based cargoes less competitive. In spite of low propylene costs, we think that overseas suppliers might attempt to hold prices stable instead of making any steep cut.”

However, there is a strong sense of caution among buyers in Vietnam and it does appears that prices above the $1060/ton mark are not being accepted yet. Most buyers are not expecting prices to firm up any further in June, yet raising possibility of hike after the Eid al-Fitr.