Saudi major lifted homo-PP offers to Vietnam and Indonesia, buying interest remains soft

A major Saudi Arabia producer reportedly lifted new homo-PP offers to Vietnam and Indonesia by $20/ton week on week to $1310-1320/ton CIF, LC AS term. Limited availability remains the primary driver steering the up-trend, though transactions at the latest price levels are rather thin.

In Vietnam, the same cargoes were dealt at $1300/ton in the previous week, and it has been reported that only converters with appointed grade would proceed with the replenishment. Meanwhile, local traders are refraining from making fresh buy, fearing that domestic ground would be dampened once Nghi Son Refinery and Petrochemical start offering new material.

“Besides, we are sourcing non-dutiable cargoes from Thailand at $1320/ton CIF Vietnam for July shipment, which is more competitive than Saudi cargoes. In the coming months, the market might only lack specific grades but we have no concern on the overall supply,” a trader said.

In Indonesia, buyers are not excited about the latest offers since the demand for homo-PP in the country has been weaker than other grades for several months in a row. “We are taking a more cautious stance at the current market condition. Indonesia is entering the holiday mood, and therefore, we believed that market might not have much room for further increases,” a buyer said.