Vietnamese PP market sees better movement, Asian suppliers seems active

Vietnamese players this week reported seeing a good number of deals for import homo-PP after regional and international suppliers agreed to discounts. Increased import offers to the near-by China market coupled with the surging crude oil values fuel buyer expectation that prices are nearing the bottom.

An international trader reported to have sold nearly 2500 tons of Saudi Arabia homo-PP cargoes at $1140/ton CIF Vietnam, LC AS term this week. The source added, “We have stopped offering as of today. Besides converters, a number of traders have actually returned to make replenishment due to low stock on hand. We hope this condition to remain in the coming week.”

Couple of large-scale converters reportedly purchased 1000 tons each on low stock and strong end product business. One of the source said, “We have comfortable stock for January and might purchase again in the coming month if prices are lower. At the current sentiment, we are not expecting any large reduction in the immediate term.”

However, Asian suppliers seem to be more aggressive in Vietnam than others, including Thailand and South Korean makers, whose offers are at relatively competitive levels. “Thai maker has been really adaptive to market movement over the past week. Few thousand tons cargoes are sold in Vietnam in the range $1150-1160/ton CFR Vietnam, LC AS term with form D, making it a huge rival for dutiable origins. Price might come under more pressure if the maker continue to pursue such sales strategy,” a Thailand distributor commented.

Not only in import sector, converters are also looking for material in the domestic ground with a household product manufacturer informed, “We managed to purchased 1000 tons of homo-PP injection from local trader at VND29,600,000/ton ($1185/ton without VAT), FD Vietnam, 14 days payment term. We are watching out for further development in the import market before making additional buy.”