Local PP prices in Vietnam continue to advance, demand remains weak

Major domestic traders in Vietnam today attempted to increase locally held homo-PP prices for the second time this week, adding another VND200,000/ton ($9/ton) to reach VND26,400,000-26,500,000/ton ($1075-1080/ton without VAT), FD Vietnam, cash term.

However, initial respond is not very positive, as buyers are still able to source material at much lower prices in the open market. A trader commented, “Despite the fact that buyers might need more time to accept higher levels, we believed that PP prices has full support to move higher given conductive situation in China and expected tightening supply from overseas suppliers amid scheduled turnaround.”