Vietnamese traders: Local PP, PE market is frozen

When saying market is frozen, Vietnamese traders are referring to the condition in which they see no movement in term of both prices and demand.

Traders here are finding it very difficult to increase domestic offers for the past two weeks, despite the firming international market at the background. It is not a surprised for homo-PP to face such situation in Vietnam as players have purchased a large quantity in early September, after official Circular from the government called for an increased in import duties to 3 per cent by 1 January 2017. A converter, however received offers for locally produced homo-PP at VND26,800,000/ton ($1090/ton without VAT), FD Vietnam, cash term said, “Only Vietnamese homo-PP are short, because suppliers can achieved better prices exporting. We are appointed to use this grade; therefore we might need to accept such high prices. Other locally held import material are offered at much lower levels.”

In the PE sector, traders are very disappointed with the state of demand though buying interest would normally improve at this time of the year. A trader informed, “We are unable to lift our offers in spite of the fact that supply for all PE grades in local market is not sufficient. Market is frozen and this is very strange to us. On the other hand, local traders are not willing to down adjust their offers, unless import market reduce significantly.” The source added that chances for international suppliers to cut offers in large range are very thin, as most are not having sales pressure at the moment.

Such inactive condition in local market is casting some effect on the import ground. There are very limited numbers of new offers observed in the import market on the first trading day of the week, however, some are rolling over their prices, yet attracting inadequate number of purchase inquiries. All hopes are put on the year end season preparation for now.