Homo-PP prices slide further in local Vietnam

Vietnamese players reported on the first trading day of the week receiving fresh offers for locally produced homo-PP at VND500,000/ton ($22/ton) lower than last week from a major domestic distributor, totaling some VND1,500,000/ton ($67/ton) reduction in two weeks time. Latest offers stand at VND25,500,000/ton ($1040 without VAT) FD Vietnam, cash term.

Though some locally held imported cargoes are being sold at lower levels; players are very concern over such rapid price cuts as it reflects the weakness of the current market condition. A source informed, “Domestic prices are now similar to current import offers, making it very difficult to maintain profit margins. Upstream costs are still firm and we see buyers started to accept the current prices; for this we hope the market can head for a more stabilize trend in the near term.”

Domestic homo-PP prices in Vietnam are now reported at VND25,300,000-25,800,000/ton ($1030-1050/ton without VAT), FD Vietnam, cash term.