Overseas sellers achieved hike on homo-PP to Vietnam, local market surged

As reported earlier this week that several overseas suppliers have implemented a hike of up to $60/ton on import homo-PP offers to Vietnam compared to earlier this month, bringing the latest price range to $1220-1300/ton CIF Vietnam, LC AS term. Apparently, prices at the lower end of the overall range have disappeared toward the end of the week with dutiable cargoes reportedly concluded at $1260/ton with the same term.

An international trader reportedly sold Saudi Arabia cargoes at $1260/ton, without any discount said, “After initial resistance, our customers have accepted the hike. Supply is very tight and prices are potentially firming up further in the coming week.”

A household products converter agreed to purchase South Korean homo-PP cargoes at $1280/ton, a $20/ton discount from initial offer added, “And yet, we are unable to obtain any quantity. Market firmed up too quickly and we fear this trend might persist in the post-Lunar New Year term.”

In domestic ground, local traders implemented up to VND800,000/ton ($35/ton) increased on homo-PP cargoes today, pushing the latest offers to VND32,600,000-33,000,000/ton ($1305-1320/ton without VAT), FD Vietnam, cash equivalent. Sales are not strong as converters are unable to accept the drastic increases at the moment. However, buyers might have to give in considering the tight supply condition.

“Many local traders are holding back on their available cargoes in spite of the recent arrival of the previously purchased parcels at lower costs. Sales are not strong after the upswing, however, we are in no rush to sell as we have not made any large purchases over the past several weeks,” a trader commented.