Vietnamese players: Import homo-PP might extend downing trend

The import homo-PP prices to Vietnam has been tracking the stable to firmer trend in nearly two months, as suppliers claimed limited supply amid surprising healthy demand since Chinese players returned from the National Day holidays. This week, the market started to witness price reduction from several major suppliers in spite of the on going maintenance shutdown within Southeast Asia region.

Major Middle Eastern producer concluded homo-PP in Vietnam earlier this week at $1000/ton CIF, LC AS term, some $40/ton lower than the last initial offers given during mid of the month. Players said this move ignites the softening path and other makers might therefore follow suite.

Not to mention the availability of the USA cargoes at below the $1000/ton threshold; a Vietnamese trader is now collecting bid prices for Uzbekistan homo-PP at $980/ton, CIF Vietnam, LC AS term. Market respond toward this level remain mixed.

A buyer commented, “We think prices might continue to move south, just that the reduction range might be limited this time considering the current propylene costs. We might replenish some quantity if our supplier agreed to the bid prices given.”

Meanwhile, other buyers are showing more of reluctance stance pointing to high domestic supply and weak demand as the main risk generator. “We were invited to join the bid, however we decided to withdraw to the side-line to monitor market further. The general demand condition is very weak, which might pressure suppliers to give more discounts in the near term.”

Besides, the periodic increased in import duties in the country is having buyers to take serious consideration in their fresh purchases. In addition to a slow down in the near-by China market, Vietnamese buyers are having bearish expectation for the PP market in the near term.