Philippines homo-PP concluded with surprising discount in Vietnam

A number of Vietnamese players reported to have purchased homo-PP cargoes Philippines origin with surprising discount of approximate $20-30/ton from last week, at $1040/ton CIF Vietnam, LC AS term – which is considered to be competitive for non-dutiable materials. There have been deals for approximate 600 tons of material of this origin reported.

A buyer purchased the cargoes said, “Many dutiable origin cargoes are offered at higher levels, hence we decided to take Philippines cargoes this time. Despite stronger propylene costs, this would probably encourage other sellers to lower their prices in the coming days.”

In fact, couple of traders immediately responded to the news by stepping back on their bids for Saudi Arabia materials. Pressure is likely to build up in the near term, Vietnamese buyers said.