Vietnamese players: Import homo-PP rebounds in small range

After a good number of deals for import homo-PP reported in the previous week to Vietnam at $1130-1140/ton for dutiable origins and $1150-1160/ton for non-dutiable origins, international suppliers started taking firmer stance on the available cargoes this week in spite of weaker upstream propylene costs.

It is reported that overseas sellers are very reluctance to accept bids at last week’s deal levels, some cargoes even witness small hike. A buyer received Thai homo-PP at $1170/ton CIF Vietnam, LC AS term said, “Our supplier claimed to have diverted cargoes to Philippines, where demand pick up recently due to short of local availability. As a result, no discount is available in Vietnam though we attempted to negotiate for $10/ton lower to make additional purchases.” Sources in Philippines confirmed the lack of domestic cargoes while buyers here are seeking for prompt shipments to fulfil the fast-approaching Christmas orders.

Saudi Arabia homo-PP emerged at $1150/ton with the same term and the supplier immediately turned down all bids at $1130/ton while attempting to close deals at offered levels. “Prices are inching up and we believed this is a result of reduced inventories pressure from satisfactory sales result in the previous week. Our Saudi Arabia supplier is insisting on no discount policy this time,” another buyer added.

Market seems to have hit the bottom, and yet soft propylene costs might limit the upside, player said. Buyers are adopting more cautious view regarding the near term market outlook and many have turned to local ground for additional purchases after unable to obtain discount for import materials.