Digestion Rate Of PP Finished Products Act As Determiner For Buying Sentiment In Vietnam
- Local and localized PP offers generally moved in the same trend
- Vietnam PP market reportedly quiet
- Import PP offers predicted to have no room to increase further
Market players expressed an opinion to SSESSMENTS.COM that the digestion rate of PP finished product act as a determiner for buying sentiment in Vietnam. In the domestic market, offers for local PP Homo Raffia cargoes recorded stable on a weekly comparison. Likewise, offers for localized Saudi and South Korean PP Homo Raffia cargoes also kept stable compared to the same period. In the meantime, sources also reported on receiving offers for localized Chinese PP Homo Raffia cargoes at VND25,600,000/ton ($1,098/ton) on cash, FD Haiphong basis, and including 10% VAT. However, there is no price comparison available as sources just start dealing with the cargoes by this week. From the import market, offers for Thai PP Homo Raffia cargoes to Vietnam captured at $1,025/ton, or $35/ton lower compared to last week. Despite the reduction, buyers were showing cold responses as most of them unwilling to accept the offers around $1,000/ton-level. Additionally, buyers voiced out buy idea for import PP Homo Raffia cargoes of Saudi origin at $930-940/ton. All import offers on LC at sight, CIF Vietnam Main Port basis.
Coming to this week, the PP market in Vietnam is reportedly quiet. SSESSMENTS.COM was told that buyers are unwilling to make purchases since the demand for finished products remains sluggish. According to the information received from the buyers, most manufacturers are running below the normal rate as the end-user market can only digest 50% of the usual volume for finished products. As such, most converters are not in a rush in making procurement and prefer to monitor market development. On the supply front, there are no significant issues reported this week.
Pertaining to the outlook, market sources opined to SSESSMENTS.COM that the room for import PP offers to increase is zero since supply in the market is getting better. While for the demand, it is predicted to remain on a bearish tone due to weak buying sentiment.
