Print

Since after the Lunar New Year, import homo-PP yarn to Vietnam has been constantly following the uptrend and at the time this report is published, Vietnam market is carrying a premium over other countries in the region. 

It appears that spot availability in Vietnam is tighter than other markets, which resulted in higher acceptance. However, buyers are very cautious in making fresh replenishment. 

On the final trading day of the week, major suppliers from Thailand and Saudi Arabia introduce $10-20/ton increases on the fresh price list, sending the latest offers for yarn grade to $1200-1210/ton CIF Vietnam, LC AS term. 

Bids are emerging at around $1180-1190/ton with the same term, “But we plan to take only 2 containers as prices are too high,” a buyer added.

Meanwhile, buyers started to notice the gradually improved supply condition following the restart at Nghi Son Refinery and Petrochemical plant. Although the supplier is still trying to clear the backlogs, sources believed that spot availability might soon normalise. The 370,000 tons/year unit was shut for approximately 30 days since late February due to an unspecified technical problem.

“We received better allocation from a Saudi Arabia supplier, too. Supply tightness would ease substantially in the coming weeks if the available quantity remains steady at the current condition,” an international trader reported. The source is offering Saudi homo-PP injection at $1200/ton CIF Vietnam and considering some minor discount due to the lack of orders.

“There are some mild signals that market might be reaching the peak, therefore, we prefer to adopt a more cautious stance. Supply tightness might ease further in June,” another buyer commented.  

Country
Vietnam