Competitive Asian PPH emerged in Vietnam, Saudi cargoes concluded at discount

As reported earlier this week, import homo-PP market in Vietnam started showing signs of stabilisation after an extended period of following the firming trend as buyers resisted higher prices. Traders have been facing difficulties in lifting domestic offers amid traditional low demand season while medium to large scale converters have mostly stock up comfortable inventories.

This week, Asian homo-PP emerged at relatively competitive levels compared to dutiable cargoes, ranging $1090-1150/ton CIF Vietnam, LC AS term, rocking market confident about the near term outlook. Several deals for Thailand homo-PP yarn are reported at $1120/ton with the same term. A buyers purchased ten containers of the material said, “This is duty free cargo and apparently more competitive than Saudi Arabia material. Market is loosing steam and we prefer to maintain passive stance over large buy.”

Another buyer received offers for Korean homo-PP at $1090/ton, CIF Vietnam added, “The quantity is small, however it is affecting the general market sentiment. We are negotiating with the supplier to obtain a small discount to close some deals.”

As a result, major Saudi Arabia producer, who rollover homo-PP offers to Vietnam earlier this week decided to concede to larger discount of $20/ton to close deals at $1100/ton CIF, LC AS term, which is $10/ton below last week deals level. Another buyer added, “The supplier has sold out the available quantity and though with limited cargoes, the impact on the sentiment is visible.”

Many buyers become concern about the near term outlook citing that market is lacking of support for further hike, especially when suppliers started to take softer stance on their cargoes amid tight supply. There is no expectation for any drastic correction, just yet the up trend might be slow down.