Traders: Vietnamese buyers are still interested in higher priced PPH cargoes

Vietnamese buyers this week has portrayed strong interest in import homo-PP, accepting dutiable cargoes at above the $1100/ton threshold before all other markets in the region, pointing to supply tightness in both domestic and international ground.

At the moment, deals for dutiable cargoes have reached $1135/ton mark and discussion with buyers shows that market is still interested in prompt cargoes even at slightly higher prices. A trader said, “Our Saudi Arabia supplier adjusted their homo-PP offers to $1170/ton toward end of the week. We are seeking to replenish some quantity, yet there is not much availability.”

Another trader received Saudi’s homo-PP injection, re-export from China at $1150/ton CIF Vietnam said, “We are waiting for our counterpart to revert on the availability of yarn cargoes. We think market might continue to firm up in the coming week, hence prompt cargoes are highly in demand.”

Meanwhile, a Korean producer has lifted their homo-PP yarn and injection offers by $40-50/ton compared to last week, reaching $1200/ton CIF Vietnam, LC AS term. This cargo is exempted from import duty of 3 per cent. With this, import homo-PP to Vietnam extended the range to $1100-1200/ton CIF, LC AS term.

According to the latest custom data, import homo-PP yarn to Vietnam in January stand at nearly 10,000 tons, which is far below the consumption rate. For this, players believed that demand in the country would hold steady in the near term, especially for prompt cargoes.