Saudi homo-PP offers continue to drop in Vietnam

As market sentiment across Asia region turns sour due to slower than expected recovery in demand after the long Lunar New Year holiday in China, import homo-PP to Vietnam has been steadily going lower over the past week. Today, a major Saudi Arabia producer decided to cut offers for the third time in two weeks, bringing latest price list to $1260/ton for yarn and $1250/ton for injection grade, all based on CIF Vietnam, LC AS term.

Deals have been achieved with additional $15-20/ton discount at $1240/ton for yarn and $1235/ton for injection grade, with the same term. However, buyers are not aggressive, instead, more on catching the bottom strategy.

“We are not very optimistic about the medium-term outlook and May and June is traditional low demand season, which also clashes with Ramadan month this year. We are taking a very cautious stance as there are still some rooms for additional reduction in the coming days, and hence we only purchase a small quantity this time,” a buyer commented.