Vietnam's Nghi Son achieves stable production rate, output reaches local and export markets

After some delays earlier this year due to mechanical issues, Vietnam’s second PP producer – Nghi Son Refinery and Petrochemical reportedly achieves stable production rate at the moment, sources close to the company said, while output has reached both domestic and regional market.

A distributor reported to have sold approximate 500 tons of homo-PP yarn from the producer to Indonesia at $1280-190/ton CIF, LC AS term this week, a reduction of $10-20/ton from the initial price list. “These cargoes are meant for pre-marketing, and therefore, we are willing to go out at attractive levels. We hope buying interest would improve in the coming week,” a distributor source informed. 

Meanwhile, several Vietnamese converters in the woven bag sector have tested homo-PP yarn from the producer find the material fit into their quality requirement. This week, at least three distribution channels open offers for this cargoes in the range VND33,200,000-33,400,000/ton ($1307-1316/ton without VAT), FD Vietnam, cash equivalent.

Nghi Son Refinery and Petrochemical is set to produce four main grades from its 370,000 tons/year PP units, including homo-PP yarn, injection, PPH film and BOPP. With homo-PP yarn available in the market, the next cargoes would be homo-PP injection, distributor sources informed.