Indian supplier withdraws PP offers to Vietnam after good sales achieved in China

Earlier this week, a major Indian producer announced new homo-PP offers to Vietnam at $1130/ton CIF, LC AS term. However, with Chinese buyers accepted dutiable cargoes above the $1100/ton threshold, the supplier quickly withdraw offers to Vietnam in anticipation of higher prices in the coming days.

A distributor offered on behalf of the producer said, “Vietnamese buyers are still reluctant to make fresh replenishment at the latest price. Yet, with improved buying sentiment in China, we think that our principal suppliers might refuse to accommodate to the demand condition in Vietnam.”

Though limited supply might keep import homo-PP market in the stable to firmer track in the immediate term, players are placing greater concern on the bearish factors, including soft upstream costs and weak demand. Higher prices therefore might face stiff resistance.