- Local PP prices captured in the same trend during May
- Demand was generally slow despite improvement in sentiment
- Current PP price trend predicted to be short-lived
According to the data collected by SSESSMENTS.COM’s team, the offers for local PP Homo Raffia cargoes in Vietnam captured increased between VND200,000-500,000/ton ($8.5-21/ton) on a week-on-week comparison during May. In the second week of the month, buyers voiced out buy ideas for local PP Homo Raffia cargoes between VND2,500,000-2,600,000/ton ($107-112/ton) lower from the offers available as the market remained slow despite the lockdown already lifted. Moving to the third week, some deals were recorded at VND600,000/ton ($26/ton) lower from the initial offer levels. By the final week of the month, sources revealed that a new local producer was offering PP Homo Raffia at VND23,000,000/ton ($987/ton) on cash, FD Vietnam basis, and including 10% VAT, which was the lowest level recorded in the market at that time in a bid to attract buyers. Some traders stated that it was hard for other local producers to compete with the new producer’s offers.
From the import market, the offers for Saudi PP Homo Raffia recorded at $820/ton in the first week of the month, at $80/ton lower from the offer announced on the week commencing April 20. Despite the downward adjustment, buyers were submitting bids at $70/ton lower from the initial offer level but got no response from the producer. By the second week, sources reported to SSESSMENTS.COM that the leading Malaysian polyolefins producer has announced June shipment offers to Vietnam market with an increment of between $10-30/ton on a monthly comparison for both PP Homo Raffia and PP Homo Injection grades. Likewise, import PP Homo Raffia offers from the leading Indian petrochemical producer also increased by $30/ton compared to the same period. While the offers for Saudi PP Homo Raffia captured higher by $20/ton on weekly comparison.
Moving to the third week, the offers for import PP Homo Raffia and PP Homo Injection of Thailand origin edged higher by $30/ton and $10/ton respectively from a week earlier. While for Saudi PP Homo Raffia cargoes, the offers were stable to softer by $10/ton on a weekly comparison. Despite the downward adjustment, done deals remained scarce due to an expectation for lower prices. By the week commencing May 25, import Saudi PP Homo Raffia offers surfaced with an upward adjustment of between $10-20/ton on the weekly comparison. Likewise, the offers for Thai PP Homo Raffia and PP Homo Injection maintained firm at above $900/ton-level. Although the offers were maintained firm, a trader opined to SSESSMENTS.COM that it was just the Thai producer’s strategy to test the market response before finally the price will be reduced again to match the buyers’ acceptance level.
During May, PP demand in Vietnam was generally slow, SSESSMENTS.COM was told. Despite the slight improvement in buying sentiment after the lockdown lifted, sources stated that the demand for finished products was still considered as slow. On the supply side, there were no significant issues reported in the country during the month.
Regarding the outlook, the majority of Vietnamese market players opined to SSESSMENTS.COM that the current uptrend in PP prices would most likely be unable to sustain without support from finished products demand. Sources added that PP prices are predicted to decline in July-August, coinciding with the rainy season in the country, which is the low season for finished products.
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Transaction for local/localized PP between May 1 to May 8 on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton | Delivery City |
|---|
| South Korea | PP Homo Injection | Offer Received | 28,300,000* | 1,104 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 21,500,000-22,500,000 | 839-878 | Haiphong |
| Vietnam | PP Homo Raffia | Offer Received | 21,500,000-22,000,000 | 839-858 | Ho Chi Minh |
Description: *High-quality materials
Transactions for import PP between May 1 to May 8 on LC at sight, CIF/CFR Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Offer Received | 860-890 |
| Southeast Asia | PP Block Copolymer | Offer Received | 890 |
| China | PP Homo Raffia | Offer Received | 790 |
| China | PP Homo Raffia | Purchased | 780 |
| Far East Asia | PP Homo Raffia | Offer Received | 790-810 |
| Far East Asia | PP Homo Raffia | Purchased | 800 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 820 |
| Middle East | PP Homo Raffia | Offer Given | 820-840 |
| Middle East | PP Homo Raffia | Bid Received | 750 |
| Middle East | PP Homo Raffia | Offer Received | 810-830 |
| Middle East | PP Homo Raffia | Sold | 840 |
| Southeast Asia | PP Homo Raffia | Offer Received | 850-860 |
Transactions for local/localized PP between May 11 to May 15 on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| Malaysia | PP Homo Injection | Offer Received | 22,500,000 | 878 | Haiphong |
| Malaysia | PP Homo Injection | Purchased | 22,500,000 | 878 | Haiphong |
| Saudi Arabia | PP Homo Raffia | Offer Received | 20,000,000 | 780 | Ho Chi Minh |
| Saudi Arabia | PP Homo Raffia | Purchased | 20,000,000 | 780 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Buy Idea | 20,500,000-21,000,000 | 800-819 | Haiphong |
| Vietnam | PP Homo Raffia | Offer Received | 23,500,000 | 917 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 23,100,000-23,500,000 | 901-917 | Haiphong |
Transactions for import PP between May 11 to May 15 on LC at sight, CIF/CFR Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | PP Homo Injection | Offer Given | 885 |
| Southeast Asia | PP Homo Injection | Offer Received | 860*-880* |
| Far East Asia | PP Homo Raffia | Offer Received | 960** |
| Far East Asia | PP Homo Raffia | Purchased | 910** |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 820-860 |
| Middle East | PP Homo Raffia | Offer Given | 840 |
| Middle East | PP Homo Raffia | Offer Received | 820-850 |
| Middle East | PP Homo Raffia | Sold | 840 |
| Southeast Asia | PP Homo Raffia | Offer Given | 885 |
| Southeast Asia | PP Homo Raffia | Offer Received | 860*-880* |
| Southern Africa | PP Homo Raffia | Offer Received | 790 |
Description: *Offers for June shipment **High MI (melting index)
Transactions for local/localized PP between May 18 to May 22 on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| Vietnam | PP Homo Raffia | Offer Given | 23,500,000-23,700,000 | 917-925 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 22,600,000-23,700,000 | 882-925 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 23,000,000-23,700,000 | 897-925 | Haiphong |
| Vietnam | PP Homo Raffia | Purchased | 20,000,000-22,000,000 | 780-858 | Ho Chi Minh |
| Thailand | PP Homo Raffia | Offer Given | 23,800,000 | 929 | Ho Chi Minh |
Transactions for import PP between May 18 to May 22 on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | PP Homo Injection | Offer Given | 895 |
| Far East Asia | PP Homo Raffia | Offer Received | 850 |
| Middle East | PP Homo Raffia | Offer Received | 830-850 |
| Southeast Asia | PP Homo Raffia | Offer Given | 915 |
| Southeast Asia | PP Homo Raffia | Sold | 870 |
Transactions for local/localized PP between May 25 to May 29 on cash, FD Ho Chi Minh basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton |
|---|
| Saudi Arabia | PP Homo Injection | Offer Given | 24,000,000-24,500,000 | 936-956 |
| Saudi Arabia | PP Homo Raffia | Offer Given | 23,000,000-23,500,000 | 897-917 |
| Vietnam | PP Homo Raffia | Offer Given | 24,000,000-24,300,000 | 936-948 |
| Vietnam | PP Homo Raffia | Offer Received | 23,000,000-24,000,000 | 897-936 |
Transactions for import PP between May 25 to May 29 on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | PP Homo Injection | Offer Given | 900 |
| China | PP Homo Raffia | Offer Received | 960 |
| Middle East | PP Homo Raffia | Offer Received | 860 |
| Middle East | PP Homo Raffia | Purchased | 830-860 |
| Southeast Asia | PP Homo Raffia | Offer Given | 930 |
| Southeast Asia | PP Homo Raffia | Offer Received | 940-950 |
Tags: Asia Pacific,English,Monthly,PP,SEA,Vietnam
Published on June 1, 2020 1:49 PM (GMT+8)
Last Updated on June 1, 2020 1:49 PM (GMT+8)
