Local Vietnam PP market see discount as more cargoes arrival

Vietnamese players reported that there is some discounts observed in the domestic PP market today as a large quantity of previously purchased cargoes arrived to the port, easing the tight supply condition.

A trader cut offers for locally held Saudi Arabia homo-PP by VND200,000/t ($9/t) compared to yesterday said, “Demand in local market has slow down a bit compared to the beginning of the week as buyers have anticipated these cargoes arrival would relief the supply tightness. We think that there might be larger discount available in the market next week because sellers might face warehouse pressure, hence we try to sell off our cargoes now.”

A converter added, “We think it makes sense for the price to go down now that more supply is available in the market. With this current local market trend, we think import material will find it hard to achieve significant hike in the coming week. We have sufficient material to cover our production till end of May now, hence we are not in rush to buy additional quantity.”

Local homo-PP prices in Vietnam is currently at VND23,000,000-24,000,000/t ($938-980/t without VAT) including VAT, FD Vietnam, 0-30 days terms.

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