Vietnamese traders: Local market sees improvement

As more players return to their desks after the long Lunar New Year holidays, Vietnamese traders reported better trading activities in local ground with both PP and PE price firm up slightly compared to the pre-holiday period.

Firmer international ground during the absence of buyers due to holiday plays an important role in supporting such development in domestic market. A trader sold locally held Saudi’s LLDPE film at VND30,600,000/ton ($1230/ton without VAT) said, “We received many purchase enquiries today. However, this local offer is still lower than the current import prices, therefore, very likely that we might increase our offers further in the near term.”

A woven bag manufacturer received locally held Saudi’s homo-PP yarn at VND29,300,000/ton ($1180/ton without VAT), FD Vietnam, cash term said, “Prices surged too quickly and even in import market, we could not find any dutiable cargoes below the $1080/ton threshold at the moment. We are waiting for more offers from overseas suppliers before placing new orders.” Meanwhile, there are couple of small deals in local market reported at VND28,800,000-29,000,000/ton ($1160-1165/ton without VAT), FD Vietnam, cash term.

Tightening supply from overseas suppliers in addition to firming upstream costs are providing market a foundation to move higher in the near term. Yet, many players started to show reluctance toward such rapid price increment.