Vietnamese players: Import homo-PP below $1150/ton mark disappeared

Import homo-PP to Vietnam has been galloping lower since mid of September on the back of improved supply and persistent weak demand condition. However, it appears that market has touched the cyclical bottom as started to bounce back, with larger range observed this week.

On an average, import homo-PP to Vietnam has gained approximate $25/ton compared to the lows during first week of November, according to CommoPlast Price Index. At the moment, offers below the $1150/ton threshold, CIF Vietnam, LC AS term become relatively scarce and sources are expecting market to remain firm in the near term. Why?

There has been heavy speculation that international suppliers have depleted considerable quantity of inventories in the previous weeks, resulted in reduced sales pressure, which might encourage persistent firm stance on the remaining cargoes in the near term. “As a result, our Saudi Arabia supplier rejected bid at $1150/ton for 500 tons quantity, citing lacking allocation,” a Vietnamese buyer reported.

At the meantime, the location gap between China and Vietnam market shrink to about $22/ton on an average since late October, making it less attractive for sellers to focus on Vietnam market, especially with the improved buying interest in China at the moment.

At the meantime, the extent of price increment might remain limited, sources opposed, citing the fact that many buyers have made sufficient purchases at the previous low prices, and might become more reluctance if further increment is introduced.

At the moment, import homo-PP to Vietnam stand at $1155-1180/ton CIF, LC AS term.