Import homo-PP to Vietnam takes another step lower as SEA suppliers push for sales

Vietnamese players reported purchasing duties free Southeast Asian homo-PP yarn this week at additional reductions, leading to heavy speculations that further prices cuts on dutiable cargoes are inevitable.

In fact, two converters in the woven bag and household products sector received final prices for Thailand homo-PP yarn at $1265/ton CIF Vietnam, LC AS term and decided to take it slow. “There is a high possibility that prices might inch lower in the coming week. We have purchased these cargoes on the first week of July at $30/ton higher and in no rush for fresh replenishment now,” a buyer said.

Another converter received final prices for Philippines homo-PP yarn at $1270/ton CIF Vietnam. While the offers appear to be competitive, sources are rather cautious. “There is still no indication that market is nearing the bottom. Risks are just too high, and therefore, we are still waiting on the sideline,” the source said.

There are very limited new offers from Middle Eastern suppliers, and yet Vietnamese players are expecting regular homo-PP yarn from this origin to move below the $1250/ton threshold to be comparative to Southeast Asian materials. 

Vietnamese traders have been putting heavy blames on Southeast Asian producers’ aggressiveness for the recent downtrend in the import homo-PP market, besides other factors such as weak demand and depreciation of the local currencies.