Mar 29, 2024 7:36 p.m.

Chinese homo-PP yarn inches higher in SEA, buyers remain cautious

Chinese homo-PP yarn inches higher in SEA, buyers remain cautious

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PPH Raf

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As the domestic spot market shows signs of improvement over the past three consecutive sessions, several Chinese suppliers decided to lift export homo-PP yarn offers to Southeast Asia slightly to reflect the situation

At the time of this report, sources said that many sellers have rejected all bids below the $920/ton CIF Southeast Asia, for Chinese materials.

“We insist on our bid level at $900/ton, however, there is no response from the supplier. At the moment, the local market is soft while Singaporean cargoes are also competitive, hence we are in no rush to lift our bid prices,” an Indonesian woven bag maker said. Chinese homo-PP yarn to Indonesia is subjected to 5% import duties provided having the certificate of origin (CO).

It is the traditional off-peak season for woven bag demand, according to Indonesian players. Earlier this week, a major local producer here introduced a drastic cut on yarn grade by $125/ton compared to last week due to soft sentiment and pressure from competitive parcels in the distribution market.

In Vietnam, a distributor informed of having sold Chinese homo-PP yarn earlier this week at $900/ton CIF Vietnam, LC AS term. This price is no longer available at the moment. The source added, “Our principal supplier is not willing to sell the cargo at $920/ton today. However, most customers have already dropped the bids amid uncertain market outlook.”

Demand in Vietnam normally turns soft after the Lunar New Year holiday. In addition, buyers are not confident about the near to medium-term market outlook citing the impact of the on-going COVID-19 outbreak on the economy and the starting up of several new plants across the region.

“We prefer to source some cargoes from local producers at the moment. In the meantime, we are monitoring the development in the near-by China market to gauge the possible trend in the coming weeks,” another Vietnamese buyer added.     

Country

China
Indonesia
Vietnam