A converter in Vietnam revealed that one of the local PP producers offered July delivery cargoes below the market price and at a shocking level. According to the converter, this week, the producer is offering PP Homo Raffia cargoes for the final July delivery allocation at VND21,600,000/ton ($928/ton) on cash, FD Ho Chi Minh basis and excluding 10% VAT. As compared to last week’s level including VAT, these offers are VND2,700,000/ton ($116/ton) lower. The converter opined that the reason for the shocking adjustment is because the producer is currently in dire need of cash as the producer only accept cash in advance payment for these cargoes. SSESSMENTS.COM pricing database shows that in the previous week, local PP Homo Raffia cargoes were mostly between VND24,200,000-24,600,000/ton ($1,039-1,056/ton), although some sellers also offered at and above VND26,000,000/ton ($1,117/ton), all on FD basis, cash and including 10% VAT.
In the import market, the converter said no fresh offers yet for PP Homo Raffia from a Saudi producer. Last week, the producer was offering PP Homo Raffia at $920/ton on LC at sight, CIF Ho Chi Minh Port, which is deemed too high. The converter believed that the firm import PP offers will gain negative responses as buyers are showing resistance towards the uptrend in PP prices in the last couple of weeks. Moreover, as local PP prices are available at a more competitive level, import cargoes will gain little interest from buyers, SSESSMENTS.COM was told.
