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As reported in the previous trading day, an international trader was collecting bids for nondutiable South Korean homo-PP cargoes to Vietnam at $1170/ton CIF, LC AS term, which triggered great concern amongst players. Final prices for the cargoes have been materialized and it appears that pressure on dutiable origin offers is building up.

Concluded price for the South Korean homo-PP cargoes stand at $1180/ton CIF Vietnam, LC AS term. “We bid at lower levels but unable to achieve. However, consider the import duties, we think dutiable cargoes are now under a lot of pressure. We only make a small buy while waiting for additional discount to emerge,” a converter commented.

Meanwhile, an international trader open offers for Saudi Arabia homo-PP at $1160/ton CIF, LC AS term, which is $20/ton lower than last week. “Buyers are placing bid at below $1150/ton threshold citing the availability of competitive South Korean material. We might not reduce offers so quickly due to limited supply, however, the pressure is there.” 

Indian homo-PP is offered at $1200/ton with the same term to Vietnam and buyers are not interested in placing any bids. The presence of the South Korean material has confirmed the softening trend and many buyers are taking this as a negotating point with other supliers.