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Import homo-PP to Vietnam extended the softening trend this week as major suppliers from non-dutiable origins including Southeast Asia and China step back on offers to smoothen sales process. Import homo-PP from the mentioned duties free origins see $10-15/ton reduction week on week with deals reported at $1290-1305/ton CIF Vietnam, LC AS term.

These cargoes are deemed more competitive than dutiable sources considering the 3 per cent import duties. “We purchased 150 tons of Indonesian cargoes at $1300/ton CIF Vietnam, LC AS term which is equivalent to approximately $1265/ton for Middle Eastern materials given the import duties gap. As a result, we do expect to see some reductions in offers for dutiable origins in the near term,” a buyer reported.

In the meantime, deals for regular homo-PP from China continue to stand at $1290/ton CIF Vietnam, LC AS term – a $10/ton drop day-on-day, though many buyers are asking for additional discounts. Chinese homo-PP becomes more available in Vietnam market over the past couple of weeks as local demand in China starts to wean amid the traditional off-peak season.

Despite the reduction, it does not appear that Vietnamese buyers are rushing out to make fresh replenishment, instead, very cautious about the quantity. “We think a further discount is possible in the near term as the market is lack of support from both demand and upstream costs. We would only purchase small quantity every time prices inch lower,” a converter reported. 

As reported earlier, May to July is the traditional slow demand season for homo-PP in Vietnam while the startup at the country’s second PP producer – Nghi Son Refinery and Petrochemical also affect the market to a certain extent.