Re-export homo-PP breeched $1000/t level

Players reported that re-export homo-PP from China surfaced in Vietnam market on the last trading day of the week at the level the market has not seen since beginning of Nov 2015. In fact, Indian homo-PP cargoes offered by international trader from China bonded warehouse at $1020/t CIF Vietnam, LC AS term, triggering a wave of tension among buyers over the speed of the current rally.

A Chinese trader said, “Our supplier informed that they managed to conclude South African homo-PP to Vietnam at $1000/t couple of days ago, hence they take more aggressive move this round. We are surprised seeing such drastic increases, however, it seems converters with low inventory are quite receptive.”

Another Vietnamese trader added, “We think the PP market is entering a price bubble period, therefore we might switch attention to PE in the coming days.”

Import homo-PP to Vietnam is currently reported at $960-1030/t CIF, LC AS term.