- Local and import PP offers mostly stride in tandem month over month during Q2
- Improvement in demand was briefly seen in late May
- Players foresee local PP prices to be dragged down by demand conditions
According to data gathered by SSESSMENTS.COM’s team, local offers for PP across all grades in the Vietnam market mostly captured stable to firmer during Q2 2020. In April, market talks have it that local PP Homo Raffia offers went up by VND1,000,000/ton ($43/ton) following the market uptrend in China. But some players said that PP Homo Raffia offers remained stable over the week. From imports, the leading Chinese polyolefins producers raised PP Homo Raffia offers by $20/ton in-line with upward momentum in the China domestic market. Similarly, Indian PP Homo Raffia offers were adjusted up between $10-20/ton. For Thailand and Saudi cargoes, offers for PP Homo Raffia moved higher between $40-60/ton and $30/ton, respectively. All price changes were on a weekly interval. For May shipment, Saudi PP Homo Raffia offers were between $150-170/ton higher compared to April. As for Thai PP Homo Injection cargoes, the offers stood at $865/ton on LC at sight, CIF Vietnam Main Port basis at the end of April.
Moving to May, local offers for PP Homo Raffia were stable to firmer between VND200,000-500,000/ton ($8-21/ton) on a week-on-week comparison. Some deals were closed at VND600,000/ton ($24/ton) lower from the initial offer levels. In the import market, Saudi PP Homo Raffia offers stood at $820/ton, or lowered by $80/ton, with bids submitted at $70/ton lower from the initial offer levels. At that time, the bids gained no response from the producer. Meanwhile, the leading Malaysian polyolefins producer announced June shipment offers to Vietnam with an increase of between $10-30/ton for both PP Homo Raffia and PP Homo Injection. Likewise, import PP Homo Raffia offers from the leading Indian petrochemical producer were also hiked by $30/ton. As SSESSMENTS.COM noted, all import offers on a monthly comparison. Whereas import offers for Saudi PP Homo Raffia captured higher by $20/ton on the weekly comparison.
In the last month of Q2 2020, local offers for PP Homo Raffia and PP Homo Injection recorded stable to firmer, with a range of increase between VND300,000-1,000,000/ton ($13-43/ton). However, in late June, one of the local producers adjusted down their offers for PP Homo Raffia by VND500,000/ton ($21/ton). For localized Saudi PP Homo Injection cargoes, the offers were captured stable to higher by VND500,000/ton ($21/ton). Whereas localized South Korean PP Homo Raffia cargoes remained stable. All offers were on a week-on-week comparison, SSESSMENTS.COM noted. For import cargoes, offers for PP Homo Raffia of India and Saudi origin at $900/ton and $930/ton respectively were deemed too high by buyers. Citing that workable offers for Saudi PP Homo Raffia should be between $830-860/ton-level, particularly for re-exporters. Meanwhile, Thai PP Homo Injection offers to Vietnam went up by $50/ton following the higher offers in Thailand’s domestic market. As for PP Homo Raffia of Thailand origin, the offers were captured on a stable level. Both changes in Thai cargoes were on a weekly comparison. For July shipment, offers for South Korean PP Homo Raffia surged between $70-80/ton from June.
As reported to SSESSMENTS.COM, demand for PP resins in Vietnam was generally sluggish during Q2 2020. In April, demand was highly affected by a partial lockdown imposed by the Vietnamese government in an attempt to tackle the spread of Coronavirus. At that time, even the uptrend in the China market was unable to stimulate the buying sentiment in the domestic market. However, a slight improvement in PP demand was briefly seen in late April as buyers were more willing to make procurements after the Vietnamese government decided to lift the lockdown. Moving to May and June, market sentiment was back to a bearish-tone due to manifold reasons such as slow demand for end-products, ample stocks on converters’ end, the rainy season, as well as buyers’ resistance towards high prices. On the production front, up until June, most Vietnamese converters were still running production at around 50% from the normal rate. Only manufacturers who produce essential products could run production at maximum capacity. Following the weak demand, no significant issues reported by Vietnamese market players regarding supply throughout Q2 2020.
For the outlook, market players contacted by SSESSMENTS.COM believe that local PP offers in the Vietnam market will start to decrease in Q3 2020. Citing that demand predicted to remain weak by then following the slow sales of converters’ finished products. Unless there are some particular events that could count as a stimulus to bolster demand in the days to come.
Transactions for local/localized PP in April on cash, FD Vietnam basis (including 10% VAT in VND term, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton |
|---|
| South Korea | PP Homo Injection | Offer Given | 22,000,000 | 858 |
| Vietnam | PP Homo Raffia | Offer Given | 23,000,000 | 897 |
| Vietnam | PP Homo Raffia | Purchased | 21,000,000 | 819 |
Transaction for import PP in April, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Far East Asia | PP Block Copolymer | Price List | 860-880 | LC at sight |
| Southeast Asia | PP Homo Film | Offer Given | 800-840 | LC at sight |
| Southeast Asia | PP Homo Film | Offer Received* | 880 | LC at sight |
| Southeast Asia | PP Homo Film | Sold | 800-840 | LC at sight |
| China | PP Homo Injection | Offer Received | 820 | LC at sight |
| Far East Asia | PP Homo Injection | Offer Received | 820 | LC at sight |
| Middle East | PP Homo Injection | Bid Received | 750-760 | LC at sight |
| Middle East | PP Homo Injection | Offer Given | 750 | LC at sight |
| Middle East | PP Homo Injection | Sold | 750 | LC at sight |
| Southeast Asia | PP Homo Injection | Offer Given | 855-865 | LC at sight |
| Southeast Asia | PP Homo Injection | Offer Received | 790 | TT |
| Southeast Asia | PP Homo Injection | Offer Received | 850 | LC at sight |
| China | PP Homo Raffia | Offer Given | 800 | LC at sight |
| China | PP Homo Raffia | Offer Received | 770-820 | LC at sight |
| Far East Asia | PP Homo Raffia | Offer Received | 800-830 | LC at sight |
| Far East Asia | PP Homo Raffia | Price List | 800 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 770-820 | LC at sight |
| Middle East | PP Homo Raffia | Bid Given | 730 | LC at sight |
| Middle East | PP Homo Raffia | Bid Received | 730 | LC at sight |
| Middle East | PP Homo Raffia | Buy Idea | 750 | LC at sight |
| Middle East | PP Homo Raffia | Offer Given | 750 | LC at sight |
| Middle East | PP Homo Raffia | Offer Received | 740-900 | LC at sight |
| Middle East | PP Homo Raffia | Sell Idea | 800 | LC at sight |
| Middle East | PP Homo Raffia | Sold | 730 | LC at sight |
| Southeast Asia | PP Homo Raffia | Bid Given | 720 | LC at sight |
| Southeast Asia | PP Homo Raffia | Bid Received | 750 | LC at sight |
| Southeast Asia | PP Homo Raffia | Offer Given | 770-885 | LC at sight |
| Southeast Asia | PP Homo Raffia | Offer Received | 750-870 | LC at sight |
| Southeast Asia | PP Homo Raffia | Offer Received | 790 | TT |
| Southeast Asia | PP Homo Raffia | Offer Received* | 850 | LC at sight |
| Southeast Asia | PP Homo Raffia | Purchased | 750-820 | LC at sight |
| Southeast Asia | PP Homo Raffia | Sold | 760-830 | LC at sight |
| Southeast Asia | PP Random Copolymer Injection | Offer Received | 980 | LC at sight |
| Southeast Asia | PP Random Copolymer Injection | Purchased | 980 | LC at sight |
| Far East Asia | PP Random Lamination | Offer Received | 990 | LC at sight |
Description: *May shipment offers
Transactions for local/localized PP in May 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 |
|---|
| Malaysia | PP Homo Injection | Offer Received | 22,500,000 | 877 | Haiphong |
| Malaysia | PP Homo Injection | Purchased | 22,500,000 | 877 | Haiphong |
| Saudi Arabia | PP Homo Injection | Offer Given | 24,000,000-24,500,000 | 936-956 | Ho Chi Minh |
| South Korea | PP Homo Injection | Offer Received | 28,300,000* | 1,104 | Ho Chi Minh |
| Saudi Arabia | PP Homo Raffia | Offer Given | 23,000,000-23,500,000 | 897-917 | Ho Chi Minh |
| 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 |
| Thailand | PP Homo Raffia | Offer Given | 23,800,000 | 928 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Buy Idea | 20,500,000-21,000,000 | 800-819 | Haiphong |
| Vietnam | PP Homo Raffia | Offer Given | 23,500,000-24,300,000 | 917-948 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 21,500,000-23,700,000 | 839-924 | Haiphong |
| Vietnam | PP Homo Raffia | Offer Received | 21,500,000-24,000,000 | 839-936 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Purchased | 20,000,000-22,000,000 | 780-858 | Ho Chi Minh |
| South Korea | PP Random Copolymer Injection | Offer Received | 30,999,000 | 1,209 | Ho Chi Minh |
| South Korea | PP Random Copolymer Injection | Purchased | 30,999,000 | 1,209 | Ho Chi Minh |
Description: *High-quality materials
Transactions for import PP in May 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 |
| Southeast Asia | PP Homo Injection | Offer Given | 885-900 |
| Southeast Asia | PP Homo Injection | Offer Received | 860*-880* |
| China | PP Homo Raffia | Offer Received | 790-960 |
| China | PP Homo Raffia | Purchased | 780 |
| Far East Asia | PP Homo Raffia | Offer Received | 790-960** |
| Far East Asia | PP Homo Raffia | Purchased | 800-910** |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 820-860 |
| Middle East | PP Homo Raffia | Bid Received | 750 |
| Middle East | PP Homo Raffia | Offer Given | 820-840 |
| Middle East | PP Homo Raffia | Offer Received | 810-860 |
| Middle East | PP Homo Raffia | Purchased | 830-860 |
| Middle East | PP Homo Raffia | Sold | 840 |
| Southeast Asia | PP Homo Raffia | Offer Given | 885-930 |
| Southeast Asia | PP Homo Raffia | Offer Received | 850-950 |
| Southeast Asia | PP Homo Raffia | Offer Received | 860*-880* |
| Southeast Asia | PP Homo Raffia | Sold | 870 |
| Southern Africa | PP Homo Raffia | Offer Received | 790 |
| South America | PP Homo Raffia | Offers Received | 780 |
Description: *Offers for June shipment **High MI (melting index)
Transactions for local/localized PP in June 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 |
|---|
| Saudi | PP Block Copolymer | Offer Given | 28,500,000 | 1,112 | Ho Chi Minh |
| Malaysia | PP Homo Film | Sold | 26,600,000 | 1,037 | Ho Chi Minh |
| South Korea | PP Homo Film | Offer Given | 26,600,000-27,000,000 | 1,037-1,053 | Ho Chi Minh |
| Thailand | PP Homo Film | Sell Idea | 28,000,000 | 1,029 | Ho Chi Minh |
| Saudi | PP Homo Injection | Offer Received | 24,500,000 | 955 | Ho Chi Minh |
| Thailand | PP Homo Injection | Offer Received | 24,700,000-25,000,000 | 963-975 | Ho Chi Minh |
| Vietnam | PP Homo Injection | Offer Received | 24,200,000 | 944 | Ho Chi Minh |
| Vietnam | PP Homo Injection | Purchased | 24,200,000 | 944 | Ho Chi Minh |
| India | PP Homo Raffia | Offer Received | 24,500,000-25,000,000 | 955-975 | Haiphong |
| Saudi | PP Homo Raffia | Offer Given | 25,500,000-25,800,000 | 994-1,006 | Haiphong |
| Saudi | PP Homo Raffia | Offer Given | 25,500,000-26,000,000 | 994-1,014 | Ho Chi Minh |
| Saudi | PP Homo Raffia | Sell Idea | 26,500,000 | 1,033 | Ho Chi Minh |
| South Korea | PP Homo Raffia | Offer Given | 25,000,000 | 975 | Haiphong |
| South Korea | PP Homo Raffia | Sold | 25,500,000 | 994 | Haiphong |
| Thailand | PP Homo Raffia | Offer Given | 24,800,000 | 967 | Ho Chi Minh |
| Thailand | PP Homo Raffia | Offer Received | 27,600,000 | 1,076 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Given | 24,800,000-26,000,000 | 967-1,014 | Haiphong |
| Vietnam | PP Homo Raffia | Offer Received | 22,800,000-26,300,000 | 889-1,026 | Haiphong |
| Vietnam | PP Homo Raffia | Purchased | 24,500,000 | 955 | Haiphong |
| Vietnam | PP Homo Raffia | Sell Idea | 23,700,000-26,500,000 | 924-1,033 | Haiphong |
| Vietnam | PP Homo Raffia | Offer Given | 25,300,000 | 987 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 23,100,000-26,300,000 | 830-1,026 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Purchased | 24,200,000 | 944 | Ho Chi Minh |
| Saudi | PP Random Copolymer Injection | Offer Given | 32,000,000 | 1,248 | Ho Chi Minh |
| South Korea | PP Random Copolymer Injection | Offer Received | 31,900,000 | 1,244 | Ho Chi Minh |
Transactions for import PP in June on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 980-1090 |
| Middle East | PP Block Copolymer | Offer Received | 820-1,020* |
| North America | PP Block Copolymer | Purchased*** | 1,190 |
| Far East Asia | PP Homo Film | Offer Received* | 980 |
| Indian Subcontinent | PP Homo Film | Offer Received** | 945 |
| Middle East | PP Homo Film | Offer Received | 980-1,030 |
| Far East Asia | PP Homo Injection | Offer Received* | 940 |
| Indian Subcontinent | PP Homo Injection | Offer Given | 920-930 |
| Middle East | PP Homo Injection | Buy Idea | 890-900 |
| Middle East | PP Homo Injection | Offer Given | 900-930 |
| Middle East | PP Homo Injection | Offer Received | 930-1030* |
| Middle East | PP Homo Injection | Purchased | 1,040 |
| Middle East | PP Homo Injection | Sell Idea | 990-1,000 |
| Southeast Asia | PP Homo Injection | Offer Given | 950-1030 |
| Southeast Asia | PP Homo Injection | Sell Idea | 990-1,000 |
| China | PP Homo Raffia | Offer Received | 900 |
| Far East Asia | PP Homo Raffia | Offer Received | 940*-950 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 880-930 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 900-930 |
| Middle East | PP Homo Raffia | Bid Received | 870-920 |
| Middle East | PP Homo Raffia | Buy Idea | 890-900 |
| Middle East | PP Homo Raffia | Offer Given | 900-930 |
| Middle East | PP Homo Raffia | Offer Received | 860-1,030* |
| Middle East | PP Homo Raffia | Purchased | 920 |
| Middle East | PP Homo Raffia | Sold | 870-930 |
| Southeast Asia | PP Homo Raffia | Offer Given | 940*-1050 |
| Southeast Asia | PP Homo Raffia | Offer Received | 920*-1,000 |
| Southern Africa | PP Homo Raffia | Bid Received | 920 |
| Southern Africa | PP Homo Raffia | Sold | 900 |
| Middle East | PP Random Copolymer Injection | Offer Received* | 1,180 |
Description: *July shipment offers **August shipment offers ***High MI (melting index)
Tags: Asia Pacific,English,PP,Quarterly,SEA,Vietnam
Published on July 7, 2020 3:05 PM (GMT+8)
Last Updated on July 7, 2020 3:05 PM (GMT+8)
