- Local PP Homo Raffia offers broke below VND27,000,000/ton-level in January
- Overall demand remained on a bearish tone
- Outlook remains pessimistic
SSESSMENTS.COM’s data showed that the Vietnamese PP market took swings up and down at the beginning of Q1 2020. In January, local PP Homo Raffia prices captured stable to firmer between VND500,000-1,000,000/ton ($21-42/ton) on a weekly basis. As for localized cargoes, offers for the Middle East and Southeast Asia origin cargoes were available at VND1,000,000/ton ($42/ton) higher than the offer level in December. In the second half of the month, local PP Homo Raffia prices had broken below VND27,000,000/ton-threshold level in the midst of Tet holiday celebration (Vietnamese Lunar New Year). From the import market, overall import prices of Middle East, Indian Subcontinent, and Southeast Asia origin edged higher between $10-30/ton on a weekly basis.
As stated to SSESSMENTS.COM, local PP prices in Vietnam showed a mixed trend during February. On the week commencing February 3, local PP offers in Vietnam recorded a slight increase as the level back to VND27,000,000/ton-threshold as the market resumed from the Lunar New Year Holiday. In general, local PP Homo Raffia prices recorded stable to softer between VND200,000-600,000/ton ($8-25/ton) on a weekly comparison. As for localized cargoes, offers for PP Homo Raffia cargoes of China, Indian Subcontinent, and Southeast Asia origin were available between VND400,000-500,000/ton ($17-21/ton) on a weekly basis. From the import market, overall import PP offers of various origins to Vietnam dipped between $10-50/ton on a weekly comparison. Following the relatively stable prices in China domestic market, in the final week of February, some Chinese traders initiated a price increase of between $10-30/ton for PP Homo Raffia to Vietnam market from offers available a week earlier.
In March, local PP offers in Vietnam showed different trends each week. In general, local PP offers captured stable to softer between VND500,000-1,000,000/ton ($21-42/ton) on a weekly basis. Sluggish demand in the market and slump in crude oil prices was cited as a factor pushing the trader to lower their offers. During the month, overall local Homo Raffia offers were available below VND27,000,000/ton-level. From the import market, most import offers have broken below $900/ton-level as crude oil prices plunged to multi-year lows following the escalation in tensions between Russia and Saudi Arabia.
In general, demand for PP resins in Vietnam was on a slippery slope during the first quarter of 2020. In January, trading activities in Vietnam remained muted in the second half of the month as most market participants left their desks for the Tet holiday (Vietnamese Lunar New Year). In February, overall demand in Vietnam’s PP market was sluggish on the back of slow sales for end-products, concern over the Coronavirus outbreak, the anticipation of lower prices, and sufficient inventory on hand. In March, growing concern over the Coronavirus outbreak and Saudi-Russia’s oil price war also took a toll on the economy, pushed the PP market into a slowdown and led to rising uncertainties. In the production sector, some local factories reported still operating at a normal rate despite growing concern over the Coronavirus outbreak.
Entering Q1 2020, market participants in Vietnam expressed an opinion to SSESSMENTS.COM that the overall outlook for PP prices and demand in the country would remain bearish if most buyers amid market uncertainties and global headwinds.
Range of local/localized PP transactions in January, FD Vietnam basis (VND terms include 10% VAT, all equivalent in USD excludes VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton) | Equivalent in USD/ton | Payment Term |
|---|
| South Korea | PP Homo Injection | Offer Given | VND | 27,000,000-27,200,000 | 1,036-1,044 | Cash In Advance |
| South Korea | PP Homo Injection | Offer Received | VND | 26,800,000 | 1,029 | 15 Days Credit Term |
| Saudi | PP Homo Raffia | Buy Idea | VND | 27,000,000 | 1,036 | TT |
| Saudi | PP Homo Raffia | Offer Received | VND | 27,400,000-27,500,000 | 1,052-1,056 | TT |
| South Korea | PP Homo Raffia | Offer Given | VND | 27,000,000-27,200,000 | 1,036-1,044 | Cash In Advance |
| Southeast Asia | PP Homo Raffia | Buy Idea | VND | 27,000,000 | 1,036 | TT |
| Southeast Asia | PP Homo Raffia | Offer Received | VND | 26,000,000-26,500,000 | 998-1,017 | Cash In Advance |
| Southeast Asia | PP Homo Raffia | Offer Received | VND | 27,400,000-27,500,000 | 1,052-1,056 | TT |
| Thailand | PP Homo Raffia | Offer Given | VND | 27,000,000 | 1,036 | Cash In Advance |
| Vietnam | PP Homo Raffia | Buy Idea | VND | 26,400,000-27,000,000 | 1,013-1,036 | Cash In Advance |
| Vietnam | PP Homo Raffia | Offer Given | VND | 27,000,000 | 1,036 | 15 Days Credit Term |
| Vietnam | PP Homo Raffia | Offer Received | USD | 1,000 | - | Cash In Advance |
| Vietnam | PP Homo Raffia | Offer Received | VND | 26,400,000-28,000,000 | 1,013-1,075 | Cash In Advance |
| Vietnam | PP Homo Raffia | Purchased | VND | 27,000,000 | 1,036 | Cash In Advance |
Range of import PP transactions in January on LC at sight, CIF/CFR Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 1,040 |
| Far East Asia | PP Block Copolymer | Sold | 1,090 |
| Middle East | PP Block Copolymer | Purchased | 950 |
| Southeast Asia | PP Block Copolymer | Offer Given | 1,040-1,150 |
| Southeast Asia | PP Homo Film | Offer Given | 1,040-1,100 |
| Southeast Asia | PP Homo Film | Offer Given | 1,080 |
| Southeast Asia | PP Homo Film | Sold | 1,060 |
| China | PP Homo Injection | Offer Received | 970 |
| Far East Asia | PP Homo Injection | Offer Given | 990 |
| Far East Asia | PP Homo Injection | Purchased | 970 |
| Middle East | PP Homo Injection | Bid Received | 990 |
| Middle East | PP Homo Injection | Offer Given | 990-1,000 |
| Southeast Asia | PP Homo Injection | Buy Idea | 990 |
| Southeast Asia | PP Homo Injection | Offer Given | 1,000-1,010 |
| Southeast Asia | PP Homo Injection | Offer Given | 1,070-1,100 |
| Southeast Asia | PP Homo Injection | Offer Received | 1,000-1,050 |
| Southeast Asia | PP Homo Injection | Sold | 1,030-1,070 |
| China | PP Homo Raffia | Offer Given | 1,000 |
| China | PP Homo Raffia | Offer Received | 960-975 |
| Far East Asia | PP Homo Raffia | Offer Given | 990-1,010 |
| Far East Asia | PP Homo Raffia | Offer Received | 980-1,010 |
| Far East Asia | PP Homo Raffia | Sold | 1,000 |
| Indian Subcontinent | PP Homo Raffia | Buy Idea | 960 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 970-1,000 |
| Indian Subcontinent | PP Homo Raffia | Sold | 990-1,000 |
| Middle East | PP Homo Raffia | Bid Received | 970 |
| Middle East | PP Homo Raffia | Offer Given | 980-1,000 |
| Middle East | PP Homo Raffia | Offer Received | 980-1,020 |
| Middle East | PP Homo Raffia | Purchased | 970 |
| Middle East | PP Homo Raffia | Sold | 990 |
| Southeast Asia | PP Homo Raffia | Bid Received | 990 |
| Southeast Asia | PP Homo Raffia | Offer Given | 1,000-1,010 |
| Southeast Asia | PP Homo Raffia | Offer Given | 1,020-1,100 |
| Southeast Asia | PP Homo Raffia | Offer Received | 1,020-1,050 |
| Southeast Asia | PP Homo Raffia | Purchased | 1,040 |
| Southeast Asia | PP Homo Raffia | Sold | 1,030-1,070 |
| Southeast Asia | PP Random Copolymer Injection | Offer Given | 1,210 |
Range of local/localized PP transactions in February on FD Vietnam basis (VND terms include 10% VAT, all equivalent in USD excludes VAT)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton | Payment Term |
|---|
| China | PP Homo Raffia | Offer Received | 26,800,000-27,200,000 | 1,029-1,044 | Cash In Advance |
| India | PP Homo Raffia | Offer Received | 25,500,000 | 979 | Cash In Advance |
| Middle East | PP Homo Raffia | Buy Idea | 24,500,000 | 940 | Cash In Advance |
| Middle East | PP Homo Raffia | Offer Received | 26,000,000-26,200,000 | 998-1,006 | Cash In Advance |
| Saudi | PP Homo Raffia | Offer Given | 26,800,000 | 1,029 | Cash In Advance |
| Saudi | PP Homo Raffia | Offer Given | 27,200,000 | 1,044 | 20 Days Credit Term |
| Saudi | PP Homo Raffia | Offer Received | 26,600,000-26,800,000 | 1,021-1,029 | Cash In Advance |
| Thailand | PP Homo Raffia | Offer Received | 26,600,000-27,200,000 | 1,021-1,044 | Cash In Advance |
| Vietnam | PP Homo Raffia | Bid Given | 25,700,000 | 986 | Cash In Advance |
| Vietnam | PP Homo Raffia | Buy Idea | 25,800,000 | 990 | Cash In Advance |
| Vietnam | PP Homo Raffia | Offer Given | 25,500,000 | 979 | Cash In Advance |
| Vietnam | PP Homo Raffia | Offer Received | 24,700,000-27,000,000 | 948-1,036 | Cash In Advance |
| Vietnam | PP Homo Raffia | Purchased | 25,800,000 | 990 | Cash In Advance |
Range of import PP transaction in February 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 | 1,020 |
| Far East Asia | PP Block Copolymer | Sold | 1,050-1060 |
| Middle East | PP Block Copolymer | Purchased | 980 |
| Southeast Asia | PP Homo Film | Offer Given | 1,040-1,110 |
| Far East Asia | PP Homo Injection | Bid Received | 980 |
| Far East Asia | PP Homo Injection | Offer Given | 930 |
| Far East Asia | PP Homo Injection | Offer Received | 1,020 |
| Middle East | PP Homo Injection | Offer Received | 920-980 |
| Southeast Asia | PP Homo Injection | Buy Idea | 1,060-1,070 |
| Southeast Asia | PP Homo Injection | Offer Given | 980-1,080 |
| Southeast Asia | PP Homo Injection | Sold | 1,070 |
| Central Asia | PP Homo Raffia | Offer Received | 980-990 |
| China | PP Homo Raffia | Bid Received | 900-925 |
| China | PP Homo Raffia | Bid Received | 940 |
| China | PP Homo Raffia | Offer Given | 900-985 |
| China | PP Homo Raffia | Offer Given | 990 |
| China | PP Homo Raffia | Offer Received | 910-980 |
| China | PP Homo Raffia | Purchased | 910-920 |
| China | PP Homo Raffia | Sold | 920-950 |
| Far East Asia | PP Homo Raffia | Bid Received | 950-980 |
| Far East Asia | PP Homo Raffia | Buy Idea | 1,000 |
| Far East Asia | PP Homo Raffia | Offer Given | 930-990 |
| Far East Asia | PP Homo Raffia | Offer Received | 930-1,025 |
| Far East Asia | PP Homo Raffia | Purchased | 990 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 930-1,010 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 930-950 |
| Indian Subcontinent | PP Homo Raffia | Sold | 900-930 |
| Middle East | PP Homo Raffia | Offer Given | 930-1,000 |
| Middle East | PP Homo Raffia | Offer Received | 910-1,020 |
| Middle East | PP Homo Raffia | Purchased | 990 |
| Middle East | PP Homo Raffia | Sell Idea | 910-920 |
| Middle East | PP Homo Raffia | Sold | 930 |
| Southeast Asia | PP Homo Raffia | Bid Received | 900-980 |
| Southeast Asia | PP Homo Raffia | Buy Idea | 1,060-1,070 |
| Southeast Asia | PP Homo Raffia | Offer Given | 940-1,080 |
| Southeast Asia | PP Homo Raffia | Offer Received | 980-1,080 |
| Southeast Asia | PP Homo Raffia | Sold | 1,070 |
| Far East Asia | PP Random Copolymer Extrusion | Offer Received | 1,190 |
| Middle East | PP Random Copolymer Extrusion | Offer Received | 1,050 |
Range of local/localized PP transactions in March on cash, FD Vietnam basis (VND terms include 10% VAT, all equivalent in USD excludes VAT)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton |
|---|
| Vietnam | PP Homo Raffia | Offer Given | 23,000,000-25,000,000 | 883-960 |
Range of import PP transaction in March on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | PP Block Copolymer | Purchased | 850 |
| Southeast Asia | PP Homo Film | Offer Given | 905-950 |
| Southeast Asia | PP Homo Film | Sold | 925 |
| Southeast Asia | PP Homo Injection | Bid Received | 980 |
| Southeast Asia | PP Homo Injection | Offer Given | 920-1,010 |
| Southeast Asia | PP Homo Injection | Sold | 980 |
| China | PP Homo Raffia | Bid Received | 870-880 |
| China | PP Homo Raffia | Buy Idea | 880 |
| China | PP Homo Raffia | Offer Given | 850-940 |
| China | PP Homo Raffia | Offer Received | 780-950 |
| China | PP Homo Raffia | Sell Idea | 900 |
| China | PP Homo Raffia | Sold | 900 |
| Far East Asia | PP Homo Raffia | Offer Given | 820-830 |
| Far East Asia | PP Homo Raffia | Offer Received | 840-930 |
| Far East Asia | PP Homo Raffia | Purchased | 920-930 |
| Indian Subcontinent | PP Homo Raffia | Buy Idea | 880 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 900 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 800-810 |
| Indian Subcontinent | PP Homo Raffia | Sell Idea | 920 |
| Middle East | PP Homo Raffia | Bid Received | 850-880 |
| Middle East | PP Homo Raffia | Offer Given | 950 |
| Middle East | PP Homo Raffia | Offer Received | 930-950 |
| Middle East | PP Homo Raffia | Purchased | 960 |
| Middle East | PP Homo Raffia | Sell Idea | 850-870 |
| Middle East | PP Homo Raffia | Sold | 930-950 |
| Southeast Asia | PP Homo Raffia | Bid Received | 820-980 |
| Southeast Asia | PP Homo Raffia | Offer Given | 825-1,010 |
| Southeast Asia | PP Homo Raffia | Offer Received | 825-840 |
| Southeast Asia | PP Homo Raffia | Purchased | 810 |
| Southeast Asia | PP Homo Raffia | Sold | 825-980 |
Tags: Asia Pacific,English,PP,Quarterly,SEA,Vietnam
Published on April 11, 2020 9:47 PM (GMT+8)
Last Updated on April 11, 2020 9:48 PM (GMT+8)
