monthlyssessments-may-vietnam-pp-prices

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.

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

MonthlySSESSMENTS: May Vietnam PP Prices

Author: SSESSMENTS

MonthlySSESSMENTS: May Vietnam PP Prices

Author: SSESSMENTS

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