Korean maker step back on homo-PP offers to Vietnam

Vietnamese buyers today reported receiving downward adjusted homo-PP offers from a major Korean producer by $30-40/ton from last week, reaching $1120/ton for LC 90 days term and $1110/ton for LC AS term, all based on CIF Vietnam.

A buyer place bid at $1100/ton LC AS term for 200 tons said, “Our supplier refused to accept our bid, therefore we might adopt wait and see stance again. Non-dutiable cargoes from China are offered well below this level and might pressure other suppliers.”

Vietnamese buyers attributed such price movement to the supplier’s effort to reduce inventories ahead of long holiday in Korea during first half of May. Another buyer received the offer added, “Converters might find it attractive to replenish at this price levels, however traders are more conservative. We are very concern about the near term market outlook given persistent sluggish demand in China and softening upstream costs.”