Saudi producer maintain homo-PP offers to Vietnam

According to market sources, a major Saudi Arabia producer has announced new homo-PP offers to Vietnam at unchanged level from earlier this month, at $1120/ton CIF Vietnam, LC AS term. The price has been stable for three weeks in a row, which concern buyers regarding the potential of further increment in the near term.

A buyer said, “We have already purchased this cargo in the previous week at $1110/ton CIF Vietnam and have no plan to make additional replenishment this week. We feel market is stagnant and there must be a stronger push in order for prices to move higher. We plan to monitor further development.” Other buyers are planning to place bid at $10-20/ton lower to close deals.

Supplier on the other hand, is very reluctant to give any discount given the lack of sales pressure. A source close to the trader said, “Supply is very limited and we think buyers would gradually accept higher levels as market digest the previous low costs cargoes. We remain optimistic about September outlook.”