Symptoms turn real: Minor correction in import homo-PP to Vietnam

Vietnamese buyers have been really conservative about making fresh purchases for import homo-PP throughout the past weeks as dutiable cargoes surged above the $1300/ton threshold. Many have been sidelining with hope to see a downward adjustment and it appears that market is moving towards buyer’s side.

Compared to last week, the average value for import homo-PP yarn to Vietnam decreased about $10/ton, according to CommoPlast Price Index, underlining the much-awaited condition.   

Saudi homo-PP yarn emerges in Vietnam this week at $1290/ton CIF, LC AS term, a $20/ton dropped from last week for the same cargoes. “Though the offer comes from a different supplier, we think the market is going down now. We are planning to replenish only a small quantity while waiting for an additional reduction in the near term,” a converter said.

Meanwhile, another supplier agrees to close deals for Saudi Arabia homo-PP yarn at $1300/ton CIF Vietnam, LC AS term, $5-10/ton softer than the previous week. “Supply for yarn is rather tight and therefore, the adjustment is not very large yet,” an international trader, said.

In fact, a deeper cut is observed on homo-PP injection grade, which is now having better supply condition, sources said. Saudi Arabia cargoes were offered in the previous week at $1300/ton CIF Vietnam, LC AS term, has now achieved deals at $1270/ton with the same term. “Our supplier is pushing out the final cargoes before going off for the Ramadan holidays. In the meantime, we are still having an optimistic outlook for the post-holiday term,” a distributor added.

Most other homo-PP injection cargoes are now falling below the $1300/ton threshold, in the range $1270-1290/ton CIF Vietnam, LC AS term, “However, we are not very much eager to purchase these cargoes given the lack of demand in the domestic ground. We hope to achieve deals for yarn at the same levels,” a buyer said.

It is still unclear if the current trend would persist in the coming week and with Middle Eastern suppliers are leaving for the weeklong Ramadan holiday, it is likely that offers in the coming week would be very limited. Vietnamese buyers are monitoring closely the next movement in order to gauge the outlook for July, though most are expecting stable to softer trend citing the weak demand condition.