Saudi major lifted homo-PP offers to Vietnam; struggled to close deals

A major Saudi Arabia producer announced import homo-PP yarn offers to Vietnam at $1270/ton CIF, LC AS term, a $10/ton increased week on week with a limited quantity available. The hike is in line with the momentum in the regional PP market, however, faced serious resistance from buyers here.

A distributor source informed that most buyers are placing bids at $1250/ton levels and it is difficult to convince customers to enter new deals amid the current macro trade environment. “A good thing is that we only have a small allocation and we would hold until demand is better,” the source added.

Meanwhile, converters are comparing with the duties free Thailand homo-PP yarn cargoes, which are available at $1275/ton with the same term. “We could avoid a lot of risks buying Thailand materials including the shorter shipping time. Demand is still slow and hence, we do not think suppliers could achieve the hike target this time,” a woven bag maker added.