Vietnamese producers delayed opening new local PP offers amid rising export market
Compared to Indonesia, the real demand for PP in Vietnam remained subdued in the face of sluggish finished goods orders. However, the rising export market played a vital role
As the market resumed trading following the long weekend holiday, Vietnamese customers reported having received no new offers for spot homo-PP cargoes from key domestic producers amid growing expectations of a continued firming trend. This is particularly true when export demand witnessed a sharp uptick in recent weeks.
A distributor commented, “Undeniably, the regional PP market is still on the rise. However, we are assessing the extent of the hikes before announcing a fresh price list.”
Prior to the New Year holiday, the distributor offered locally produced homo-PP yarn at VND27,500,000/ton including VAT ($1029/ton excluding VAT), FD Vietnam, cash terms.
Over the past weeks, Vietnamese suppliers have been actively directing their cargoes to Indonesia, where the purchasing interest steadily picks up ahead of the implementation of the import quota system on 10 March 2024. Deals for January loading homo-PP yarn originating from Vietnam were concluded at as high as $1095/ton CIF Indonesia, while homo-PP injection is currently offered at $1040/ton with the same terms.
“The latest surge in local PP prices in Indonesia paved the way for international sellers to introduce further price increases to this market. The only issue is that cargoes must arrive before March 2024,” another Vietnamese producer added.
Compared to Indonesia, the real demand for PP in Vietnam remained subdued in the face of sluggish finished goods orders. However, the rising export market played a vital role in elevating domestic prices since December 2023. Sources believed that Vietnamese producers might lift spot offers to the level of VND28,000,000/ton including VAT ($1047/ton excluding VAT), FD Vietnam in the coming week.