Vietnamese buyers: Import homo-PP surged to beyond acceptance levels

This week, several international producers decided to implement larger hike on import homo-PP offers to Vietnam despite demand has not shown any improvement. On an average, import homo-PP to Vietnam increased approximate $20-30/ton week on week, reaching $1080-1120/ton CIF, LC AS term.

Market last reached these levels during late April, before prices persist on the soft trend throughout May, Jun and July. An international trader opened offers for Saudi homo-PP at $1110/ton CIF Vietnam said, “We have achieved good sales in nearby China market this week and our principal supplier plan to hold firm prices to Southeast Asia.”

A good number of buyers contacted by CommoPlast show no interest to make replenishment at such drastic hike with a source said, “Domestic ground is not catching up and we suspended all purchases since overseas offers hit the $1080/ton mark. We think that any further uptrend will be capped as the downstream market is still amid traditional slow season.”

Another buyer received Indian homo-PP at $1100/ton CIF Vietnam informed that the supplier is not willing to enter negotiation, adding, “We have comfortable inventories on hand and at the current prices, it is not attractive enough to stock up extra quantity.”

Other buyers claim that South Korean homo-PP offered at $1120/ton CIF Vietnam, however the maker is willing to give $10-20/ton discount, “As a result, we do not find it attractive enough to purchase dutiable cargoes at the same levels. At the moment, we are just waiting on the sideline.”

While Vietnamese buyers are showing stiff resistance toward the latest offers, it is important to watch out for the next development in China market. Healthy demand here over the past week plays a crucial role in pushing the general sentiment across Asia up.