Sentiment in Vietnam polyolefin market gains momentum

Vietnamese players on the last trading day of the week reported a notable pick up in buying interest from local buyers as stronger upstream values boosted market confidence. Many traders reportedly sold out or suspended offering with hope to achieve better margins in the coming week.

A trader sold Middle Eastern LLDPE film said, “We managed to conclude deal for all the quantity we have on hand at the price levels that we couldn’t sell in the past few days. Our next cargoes shall only arrive by mid- September and we think chances that local market might continue to advance in the coming week.”

Another trader added, “Received many purchased inquiries for homo-PP today and it seems that firmer upstream values is supporting the sentiment. Next week shall be a short week due to the National Day holidays; yet we expect to see higher prices once market resumes trading.”

Local prices have yet to respond immediately to such sudden pick up in demand, however the outlook is rather positive with September is the traditional high demand season as well as cracker shutdown would keep the monomer costs on the firm track.