A Vietnamese trader is hesitant on further PP price adjustment following buyers’ resistance, SSESSMENTS.COM was told. Compared to a week earlier, the offers for localized Saudi PP Homo Raffia cargoes were adjusted up by VND500,000/ton ($21/ton). Although other traders’ offers for the cargoes are at VND500,000/ton ($21/ton) lower than the current offers from the company’s end, the trader is planning to increase the offers further by VND500,000/ton ($21/ton) following the upward adjustment made for import Saudi PP Homo Raffia offers between $20-30/ton on the weekly comparison. However, the trader is still hesitant in adjusting the offers further as buyers are showing resistance towards high prices. For local PP Homo Raffia cargoes, the offers have gone up as much as VND1,700,000/ton ($73/ton) compared to a fortnight ago.
Despite the slight improvement recorded, PP demand in Vietnam could not be considered as strong yet since most market players remain on a wait-and-see stance. Further explained to SSESSMENTS.COM, price increment will be challenging as some buyers are still showing resistance towards higher prices. Especially for import cargoes, buyers including the trader itself are hesitant in making purchases taking into account the lead-time. The trader stated that if PP prices are on a downtrend by the time the cargoes arrived, they will incur losses.
