As the local PP yarn market slipped, Thai producer slashed import prices to Vietnam

The Vietnamese homo-PP market has been embarking on a downtrend over the past several weeks due to the persistently weak demand condition. Manufacturers here refused to make replenishment amid the inability to transfer the higher raw material costs to end-product prices.

The domestic spot market takes another notch lower, with a local producer cut spot offers by VND500,000/ton ($22/ton) earlier this week to VND36,960,000-37,070,000/ton including VAT ($1452-1457/ton excluding VAT), FD Vietnam.

Toward the end of the week, offers for another locally produced cargo fell to VND36,500,000/ton including VAT ($1440/ton excluding VAT), FD Vietnam. At the peak during early March, offers for this parcel were at VND42,000,000/ton including VAT ($1657/ton excluding VAT), FD Vietnam. 

The sharp price cuts in the local ground add more pressure to the import market. In fact, a major Thailand maker decided to slashed homo-PP yarn and injection prices to Vietnam by another $65-75/ton after a $20/ton decreases introduced at the beginning of the week, sending the latest offers to $1450-1460/ton CIF Vietnam. Total reductions for this cargo compared to last week reached $85-95/ton. 

“No one has shown the interest to make purchases because local cargoes are more competitive. At this moment, we are not seeing the supports for the market to reverse its course. Import offers for non-dutiable cargoes must go below the $1400/ton threshold,” a market source said. 

At the lower end of the overall price range, Chinese suppliers maintain offers for regular homo-PP unchanged at $1350-1370/ton CIF Vietnam, with limited transactions reported.