Lack Of Supporting Factors, Vietnam PP Market Expected To Follow Price Trend In China
- A Vietnamese PP producer released special offers
- Several factors dampened demand for PP resins
- Vietnamese PP market is expected to follow price movement in China
Within the week commencing July 27, SSESSMENTS.COM noted that a local PP producer in Vietnam has released special offers which require payment on a cash basis and the delivery of materials should be done within July. On a weekly comparison, the offers from the producer’s end have decreased between VND100,000-400,000/ton ($4-17/ton), available at VND22,200,000/ton ($956/ton) on cash, FD basis and excluding 10% VAT. For localized cargoes, most traders maintained the offers for localized PP Homo Raffia of various origin stable over the week, ranging between VND25,600,000-26,200,000/ton ($1,103-1,129/ton) on cash, EXW basis and including 10% VAT. However, a local trader captured to increase localized Saudi PP Homo Raffia cargoes by VND500,000/ton ($22/ton) during the same time frame, stood at VND26,800,000/ton ($1,155/ton) on cash, FD basis and including 10% VAT. In the import market, Saudi PP Homo Raffia prices have gone up by $10/ton as compared to the price list announced on July 1. In contrast, the leading Indian petrochemical producer adjusted down the offers for PP Homo Raffia by $15/ton as compared to a fortnight ago.
Demand for PP resins in the Vietnam market is not on the positive note on the back of several factors. Buying appetite has dampened by the rainy season in the Northern part of the country and the hot season in the Southern part of the country. Other than that, the rising concern regarding the current situation in central Vietnam also gave a bad influence as it led to logistic disruption. Moreover, most buyers are anticipating the arrival of import materials in the near term, hence, customers are not in a hurry to replenish their inventory. On the supply front, no significant issues reported by Vietnamese market players to SSESSMENTS.COM.
Looking ahead, citing the downtrend in the China PP market, Vietnam’s PP market is expected to follow suit. Moreover, as demand for PP resins in Vietnam lacks supporting factors, it will eventually drag PP prices down, as stated to SSESSMENTS.COM.
