Import homo-PP to China shredded post-holiday gains; Vietnam sets to follow

The import homo-PP yarn market in China has shredded all the gains recorded in the pre- and post- National Day holiday term to return to the level last seen in late August 2018. 

As on 2 November 2018, import offers for homo-PP from dutiable and non-dutiable origins stood at $1190-1270/ton CFR China, LC 0 – 30 days term, down approximately $65/ton on an average compared to the second week of October, data from CommoPlast showed.

“Middle Eastern suppliers have not agreed to deals below the $1200/ton threshold, however, customers are bidding very aggressively. We are waiting on the sideline now,” a trader said.

Meanwhile, an international trader has expressed the intention to offer discounts on deals for Saudi cargoes this week, which might send prices to the below $1200/ton mark. “Customers are not eager to make large purchases. At the moment, we are waiting for the green-light from the principal supplier before pushing ahead with new offers,” the source added.

In Vietnam, major overseas sellers also stepped back on the import homo-PP offers by $10-20/ton week on week to $1230-1290/ton CIF Vietnam as on 2 November. Vietnamese buyers are watching out closely the development in the nearby China market and refused to make additional buy for the time being. 

“We do not expect prices below the $1200/ton market so soon in Vietnam, however, there must be some adjustment. Demand is not as strong as expected. This year, demand during the manufacturing season is just too disappointing,” a Vietnamese woven bag maker commented.