As stated to SSESSMENTS.COM, a Vietnamese converter is taking a halt on procurement activities, citing that the company is still holding onto sufficient stocks; thus not in a hurry to make replenishment yet. The converter already secured some volumes to cover two months of production needs. This week, the converter received import GPPS Injection offers from a South Korean producer and a Thai producer. As compared to last week’s level, current offers of South Korea origin are $40/ton higher. Meanwhile, the latest import offers of Thailand origin captured at $20/ton higher as compared to the same period. Particularly for offers from the Thai producer, the trader opined that most buyers will be reluctant to accept such a level since it is considered too high. All import offers are on LC at sight, CIF Ho Chi Minh Port.
From the company’s end, the converter saw a gradual increase in demand for cookies and candies boxes over the week, even though it is not a high season for the PS end-products in Vietnam. Traditionally, the year-end holiday season is the high season for end-products in Vietnam PS market, especially around the Tet holidays (Vietnamese Lunar New Year). Therefore, the converter is not actively making procurement and prefers to purchase on a hand-to-mouth basis only. This month, SSESSMENTS.COM was informed that the converter is running at 50% from the normal production capacity, a slight increase of around 5-10% from the previous month’s level.
For the outlook, the converter assumed that the offer level might continue to move higher at a steady pace in the days to come, in line with the price trend in these past few weeks.
