Saudi major lifted homo-PP offers to Vietnam, possible allocation cut

According to market sources, a major Saudi Arabia producer has up adjusted their homo-PP offers to Vietnam today, after rolled-over their prices in the earlier trading session, reaching $1035/ton CIF Vietnam, LC AS term. A distributor offered on behalf of the producer reportedly informing buyers in the country about a possibility of offers disruption in the next two to three weeks without elaborating further detail.

A buyer informed, “We purchased a small quantity yesterday at $1015/ton and we plan not to take position immediately after receiving the news. Factors impacting the market are too diverged; hence we need to monitor further movement. Local market is rather weak at the moment.”

Another market source added that Middle Eastern PP supplier might focus on US and European market in the near term given better profit margins and this might affect their allocation to Asia. However, sentiment remains calm after the news.