PP players: Vietnam remains an attractive re-export destination for Chinese traders

As reported earlier, trading activities in China remain sluggish even after the Lantern Festival, which resulted in high stock level in most major warehouses, especially in the Eastern China area. Traders in the country therefore, have been actively seeking for opportunity to re-export on hand cargoes to neighboring countries and Vietnam is among targeted destination.

A Chinese trader sold Korean homo-PP at $1125/ton FOB China (without Form E, therefore import duty is applicable), LC AS term to Vietnamese buyers said, “Supply in Vietnam is relatively tight, yet buyers here are more interested in readily available parcels than deep-seas cargoes. We are not having large quantity of PP at the moment, however we are gathering available stock to re-export to Vietnam for better margins.”

Earlier this week, a deal for Middle Eastern homo-PP re-export from China to Vietnam was reported at $1145-1150/ton CIF, LC AS term. However, today, players informed of the available of 200 tons Saudi’s homo-PP cargoes re-export from China, concluded at $1155/ton with the same term. A Vietnamese buyers said, “Buyers reacted very fast and accepted to purchase the cargoes within ten minutes. Prompt cargoes are highly preferred at the moment as domestic ground is tight.”

This week, the pace of price increment in import homo-PP offers to Vietnam has slow down a little compared to previous week, however, the price acceptance ceiling is moving higher. At the moment, import homo-PP prices to Vietnam stand at $1145-1170/ton, CIF, LC AS term while to China at $1060-1110/ton, CFR, LC 0-90 days term.