Import homo-PP shows signs of rebound in Vietnam

As Vietnamese buyers show greater buying interest for import homo-PP over the past week on the belief that market has reached the bottom; couple of international traders are attempting to implement moderate hike on their cargoes with aim to test market respond.

In fact, buyers reported to have received South Africa homo-PP yarn at $45/ton increased from last week, reaching $1080/ton CIF Vietnam, LC AS term, shipment from Taiwan hub by early July. Despite many converters are still looking for materials, this offer is not immediately accepted.

Meanwhile, a Saudi Arabia producer resumed offering after completing maintenance shutdown at $1070/ton for homo-PP to Vietnam this week. A buyer placed bid at $30/ton lower said, “Though there are very limited offers available in the market this week, we are unable to accept such high prices at the moment. We are waiting for the supplier to feedback on our bid.”

Vietnamese buyers are generally having bright expectation for the PP market outlook in the near term amid healthier buying interest across the region and firming upstream costs. “And we hope local market could pick up too with PetroVietnam taking the PP unit off-stream for a 52 days maintenance work starting 5 June,” a local trader said. The source also reported to have obtained $20/ton discount for Middle Eastern homo-PP yarn to close deal at $1040/ton CIF Vietnam, LC AS term.