Non-dutiable homo-PP offers hit above the $1200/ton mark in Vietnam

It has been several months since import homo-PP offers to Vietnam surged above the $1200/ton threshold, even for non-dutiable origin. However, this week, Thai maker reportedly sold homo-PP yarn cargoes at $1210/ton CIF Vietnam, LC AS term and immediate upward adjustment to $1230/ton with the same term is observed.

A source close to the producer stated that supply and very limited while adding, “Converters are running low on inventories and hope on the arrival of low cost USA cargoes crushed in the Harvey cyclone. We are confident that market would accept higher price level soon.”

Meanwhile, another South Korean producer delays announcing new offers for homo-PP to Vietnam, yet expresses sell idea at $1220/ton CIF, LC AS term. The source added, “We are only having PP block copolymer cargoes at the moment priced $1190/ton CIF Vietnam, LC AS term. Market might resist our offers and we think tightened availability would show the effect.”

Offers for dutiable cargoes at the $1200/ton mark have not been able to attract any buying interest at the time this report is published. Buyers are watching market movement very cautiously, especially when China sentiment stagnated after two consecutive weeks of skyrocketing prices.