Overseas suppliers continue lifting import homo-PP offers to Vietnam

Import homo-PP to Vietnam has been constantly firming up for four weeks in a row, hitting the highest levels since 2016, thanks to tightened supply and strong upstream costs. Compared to mid of December 2017, the average import homo-PP prices to Vietnam has jumped more than $60/ton, according to CommoPlast Price Index, eradicating offers below the $1200/ton threshold.

This week, overseas sellers continue to implement fresh hike on the cargoes though buyers are slower in accepting the recent increases. Both Thailand and South Korean homo-PP yarn are offered at $1280/ton CIF Vietnam, LC AS term. “Import market is firming up too quickly while local ground is trailing behind. We are unable to accept this offer at the moment,” a local trader informed.

Indian homo-PP are offered at $10-20/ton increased week on week, reaching $1220-1230/ton CIF Vietnam, LC AS term. “Demand turned stalled after the hike. Buyers might need more time to adjust to the rapid development in the import ground in recent weeks. We are in no rush to cut offers given limited quantity available,” an international trader informed.

Import homo-PP to Vietnam currently stand at $1220-1280/ton CIF, LC AS term.

Players are discussing on the near term market prospect with most expectations call for limited room for any drastic hike to take place. Traders started to reduce purchases fearing the possible bearish demand condition after the Lunar New Year holiday. “The most important thing is that converters are unable to transfer higher costs to end products, causing negative margins. If this condition persist, we are not confident that further hike is possible,” a trader said.

Other traders are relying on the previously purchased stock instead of making fresh buy, which slow down the sentiment to a certain extent. Market is returning to the tug-of-war condition and yet, suppliers appear to have an upper hand at the moment.