More homo-PP offers observed in Vietnam, buyers resist price hike

Vietnamese buyers reported receiving more homo-PP offers from various international suppliers toward the end of the week, mostly at stable to firmer levels compared to last week. Prices below the $1050/ton threshold are gradually disappearing, yet buyers here are not showing high acceptance level toward new prices.

Saudi Arabia homo-PP by the final two trading days of the week mostly stand in the range $1060-1070/ton CIF Vietnam, LC AS term with the lower end represent deal level. These prices however are facing stiff resistance from Vietnamese buyers, especially local traders, who are encountering slower than usual domestic demand. A trader commented, “We did not make any purchases at the latest price levels since the demand condition does not provide any support. We would continue to wait and see.”

Meanwhile, converters are still accepting import homo-PP at $1050/ton and actively placing bid for Middle Eastern and Indian cargoes at this level. A converter purchased Oman homo-PP yarn at $1050/ton CIF Vietnam said, “We are not planning to make any additional replenishment at higher level. At the moment, our production is covered till August, hence we might withdraw to the sideline to monitor further development.”

Chinese coal based homo-PP also appears in Vietnam this week at $1070-1080/ton CIF Vietnam, LC AS term. Supplier for these cargoes brought up the willingness to negotiate with serious buyers and might rely on the advantages of duty free to conclude deals. Another buyer received South Korean homo-PP at $1090/ton CIF Vietnam said, “It is too high and we are not planning to place any bid. A number of import cargoes just arrived the market this week and we are thinking of obtaining some quantity from domestic ground instead.”

Such resistance pinpoints the concern that the recent firming trend might be short lived; especially with demand in China remain below expectation. Import homo-PP to Vietnam this week in overall stand at $1045-1090/ton CIF Vietnam, LC AS term.