Vietnamese traders: Local PP demand sees improvement

Vietnamese traders on the first trading day of the week reported seeing better demand for homo-PP from domestic buyers in spite of some VND200,000/ton ($9/ton) increased in offers compared to last week.

Many believed that this is a result of firmer energy values and the speedy rebound in the import market recently. A trader offer locally held Middle Eastern homo-PP cargoes at VND26,000,000/ton ($1060/ton without VAT) FD Vietnam, cash term said, “We received good purchase inquiries from local customers today and we believed that market would sustain the firming trend in the near term. Our international suppliers have yet to open new offer, however, we were not able to replenished sufficient cargoes in the past weeks given lack of quantity.”

Another trader added, “Firming international trend is cushioning the domestic market. We are not having large inventories, hence we prefer to sell slowly with aim to reduce loses since most of our cargoes now are at higher costs. We think buyers are more convinced about the rebound trend at the moment, yet most purchases are in small quantity.”

Domestic homo-PP prices in Vietnam is currently reported at VND25,800,000-26,000,000/ton ($1055-1060/ton without VAT) FD Vietnam, cash basis.