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A major Saudi Arabia producer has reportedly set final prices for import homo-PP yarn and injection cargoes to Vietnam at $1110/ton CIF, LC AS term after collecting bids during late last week. While some customers have made purchases, many others decided to refrain from accepting the current price levels despite the firming outlook.

A converter purchased 300 tons at the mentioned price said, “This is the first purchase we made since returning from the Lunar New Year. Very few suppliers open offers recently, but non-dutiable cargoes are obviously more competitive. The market might be firm in the near term, but we do not see any drastic increases,” a woven bag maker said.

Meanwhile, most other customers, who placed bids below the $1100/ton threshold decided to not proceed with the procurement given the buy and sell price gap.

“We are just not too confident about the near to medium term outlook. At the moment, the local market offers better prices and payment term. We are looking at non-dutiable cargoes, too, which appears much more competitive,” another woven bag maker added.

Despite the resisting sentiment, the supplier might prefer to hold firm on the cargoes. A distributor said that they are putting more attention to the Turkey market in recent weeks. Although prices are not much higher than Asia, however, lower transportation costs help to boost netback. “Demand in Turkey is expected to improve in the near term as the preparation for the Ramadan season taking place,” a source commented. 

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Vietnam