Vietnamese players: Is the PP bull hitting the peak?

After almost three consecutive weeks of strong buying, Vietnamese players in the PP market appears to be slowing down this week as most players claimed to have sufficient cargoes at the moment. Besides, psychological effect from the steadily declining energy market is also counted in the dwindling buying interest this time.

A trader received new offer from a major Middle Eastern maker at $40/ton higher than last week to reach $1020/ton CIF Vietnam, LC AS term reported, “Our supplier has been contacting us to offer $20/ton discount from the initial offer level, however we are not planning to replenish additional quantity. We notice there are more offers emerged recently, which could indicate an improved in supply condition. We prefer to be cautious now.”

Another converter added, “We already have comfortable stock to cover production needs till September, hence we avoid taking position amid falling energy costs and weaker trading activities in the near-by China market. Demand for our end product is regular.”

Other sources in the country contacted by CommoPlast are sharing similar opinion, signaling a strong sense caution among players. A buyer added, “Some Fareast Asia sellers is heard to have withdrawn their offers today. Yet, we think further hike might face stiff resistance from buyers.” Market is now expecting a relatively more stable trend in the near term while medium term outlook remains uncertain.