Overseas sellers achieved hike on homo-PP cargoes to Vietnam

As reported earlier, couple of major international traders implemented additional $10-20/ton hike on import homo-PP originated from India and Saudi Arabia to Vietnam this week, bringing latest offers to $1210-1220/ton CIF, LC AS term. Deals have been reported at the same levels while suppliers have suspended all offering with plan to introduce fresh increases in the coming week.

A trader said, “We only have 200 tons of Saudi Arabia homo-PP and managed to sell off at $1210-1220/ton CIF Vietnam term. Supply is tight and buyers might have limited choice but to accept new prices.”

A buyer purchased the cargoes added, “We were informed that new offers for the coming week could reach $1250/ton mark. Supply is very tight and we are waiting for previous cargoes to arrive, yet decided to make a small replenishment for after Lunar New Year arrival.”

At the moment, it is still unclear on how much further would the current uptrend sustain, however, Vietnamese buyers started voicing concern that prices above the $1250/ton mark would seriously damage end product margins, which might mark the cyclical price ceiling. “End product business is weak and many are cutting prices by as much as 20 per cent in order to deplete stock. Too high raw material costs might bump into strong resistance,” a source commented.