Domestic PP and PE prices move south in Vietnam

After an extended period of holding firm on local cargoes with the support of limited availability, the strong sentiment in domestic Vietnam market started to ebb as traders stepped back on their offers in the face of weak buying interest. It is reported that locally held homo-PP and PE prices today are opened at VND200,000-400,000/ton ($9-18/ton) weaker than at the beginning of the week, yet market remain “strangely silent”, players said.

A trader said, “A number of PP cargoes have arrived the Ho Chi Minh main port, sending a shivers wave across the domestic market as buyers expected a sudden influx of material would cause further price reduction in the near term. However, we have not been able to clear any cargoes due to port congestion.”

Another trader down adjusted their prices said, “LLDPE film supply in local market still tight, yet buyers are slowing down on their purchases given falling upstream markets. We think this condition is very temporary since international market is still on the rise with the lack of Middle Eastern cargoes. We hope this could give sufficient support in preventing domestic ground from sliding too quickly.” 

Players expressed a general bearish expectation for the market outlook in first half of August given perceived improved supply with more cargoes reached the local market. Kindly visit www.commoplast.com for detailed domestic price levels after the adjustment.