Import homo-PP to Vietnam showed signs of cooling down

After several weeks of holding firm stance on import homo-PP offers to Vietnam due to limited supply; couple of international traders have loosen stance on the offers today as market resistance is too stiff. Small discounts of $10-20/ton become available, yet buyers continue hoping for larger reduction.

Indian homo-PP cargoes are now available at $1170/ton CIF Vietnam, LC AS term from three major distributors in the country, which is $10/ton blow initial price list. Vietnamese buyers are surprised and a source said, “We placed bid at this level earlier this week and got rejected. Today the supplier down-adjusted their offers and we procure a small quantity.” There are market talk about a deals for this origin at $1165/ton CIF Vietnam, LC AS term, however no confirmation at the time this report is published.

Besides, deals for import homo-PP injection from Oman also reported at $1170/ton CIF northern Vietnam LC AS term. The supplier was not willing to accept any bids in earlier sessions has now conceded to $20/ton reduction from price list to close deal. Local traders are still cautious despite running low on inventories. A trader said, “Either import market has to come down another $40/ton or domestic ground has to firm up, else we are not making profit buying at the current market levels. Therefore, we are not in rush to make replenishment.”

Market direction has yet to become clear and many prefer to monitor the pre-holiday replenishment activities in China before making decision. A number of large-scale converters are having two months worth of stock and might need to make replenishment soon. Supply remains pretty limited in general, which might prevent any drastic plunge in prices.