Middle Eastern homo-PP hold steady in Vietnam, resistance built up

This week, most Middle Eastern producers have kept homo-PP offers to Vietnam on the stable track claiming limited availability after achieving satisfactory sales to China. However, demand in the country is diminishing amid piling domestic supply and falling confidence in near term outlook.

An international trader offered homo-PP on behalf of a Saudi maker at $1035/ton CIF Vietnam, LC AS term said, “Many customers are asking for $25-35/ton lower on deals, however, we could not meet these bids at the moment. Our principal supplier has come out final price at stable level $1025/ton. Sales are very disappointed.”

Traders in Vietnam are mostly showing very limited interest to make fresh purchases, given comfortable stock from previous procurement. One of the sources added, “Local market is weak now, but we believed if we can hold until January next year, we could make some margins. This is because very few cargoes arrive during that time as traders are not interested to accept current prices with the up-coming import duties rate.”   

Buyers are also psychologically impacted by the recent plunging propylene costs in Southeast Asia region and a retreat in buying interest in near-by China market. A converter in the household sector confidently informed, “We are covered till end of January and currently waiting for further reduction before taking additional quantity. We wee market is heading for a correction within December.”

Import homo-PP to Vietnam currently stand at $1025-1070/ton CIF Vietnam, LC AS term.