Re-export homo-PP from China emerged in Vietnam market again

Vietnamese players reported to have received offers for Russian homo-PP cargoes at $1090/ton CIF Vietnam, LC AS term, re-export from China. Re-export cargoes from China to Vietnam have been in absence since early March due to softening trend in this market. In recent week, import PP offers to Vietnam from international market firmed up $20-40/ton, generating sufficient location gap for Chinese suppliers to divert their cargoes.

A Vietnamese buyer commented, “Both local and import ground in Vietnam are warming up now and we think very likely that international suppliers would maintain firm stance on their cargoes. We are concern that export and re-export cargoes from China therefore would flow again to Vietnam in larger volume in the near term.”

There might be re-export material from China show up again in Southeast Asia market if the margins are attractive; however, the quantity might be small as import arrival to China might be smaller this month given slack replenishment activities since Lunar New Year. “Besides, local inventories have been digested considerably, hence we are not having high homo-PP stock on hand though we are watching out for further development in Vietnam market,” a Chinese trader commented.