Import Saudi's homo-PP reaches $1200/ton mark in Vietnam, sentiment hit by re-export offers

Vietnamese buyers reported to have received fresh homo-PP offers from a major Saudi Arabia producer at $1200/ton CIF Vietnam, LC AS term. The cargo is shipped from bonded warehouse in Southeast Asia.

Buyers were informed about the lack of allocation, which supported such aggressive price decision from the maker. However, with the availability of the re-export cargoes from China, the PP bull might face hurdles in advancing any further, buyers said. This week, several deals for re-export material are concluded at softer levels compared to general market prices, prompting concern over the state of demand in China.

A buyer commented, “Import homo-PP priced above the $1170/ton mark attract very limited buying attention, leave alone the $1200/ton level. Despite the irregularity origins of the re-export cargoes, prices are very competitive and we believed this would pressure other direct cargoes.”

Import homo-PP to Vietnam currently stand at $1115-1230/ton CIF, LC AS term.