Overseas sellers adopt firmer stance on import homo-PP to Vietnam

Following the rebound in the nearby China market, overseas sellers started adopting a firmer stance on import homo-PP offers to Vietnam by mid of the weeks while buyers here started to speed up purchasing decision. 

In fact, Indian cargoes are now priced at $1085/ton CIF Vietnam, LC AS term, up $15/ton week on week and the sellers indicated the small room for negotiation. “We sold a good quantity in the previous offerings. Lower inventories pressure coupled with strengthening upstream costs is giving sellers an upper hand,” a distributor source added.

In the meantime, Thailand homo-PP yarn that was available at below the $1100/ton threshold in the previous week has now achieved deals at $1110/ton CIF Vietnam, LC AS. A buyer purchased this cargo said that yarn cargoes are very limited and Saudi Arabia injection grade has jumped to $1070/ton with unconfirmed quantity available. 

Several large-scale converters managed to purchase some cargoes just before the price firm up, and again withdraw the sideline waiting for the next down-cycle. “We procured a total of 1500 tons over the past several days. We can now retreat to the sideline,” a laminated woven sack maker informed. 

The sustainability of the current firming trend is still in question, sources said, citing the uncertainty in the trade talks between China and the USA. “Market might temporarily touch the cyclical bottom, but we prefer to be cautious. Anyway, we have comfortable inventory until early March next year,” a household product maker added.

At the time this report is published, import homo-PP injection to Vietnam ranging $1050-1085/ton CIF, LC AS term while yarn stands at $1070-1160/ton with the same term.