Current PP Price Trend In Vietnam Market Predicted To Be Short-Lived
- Some deals were recorded in the domestic market
- Demand remains unchanged from last week
- Current trend in PP price is predicted to be short-lived
Vietnamese market players contacted by SSESSMENTS.COM stated the current uptrend in PP price in the country will be short-lived. In the domestic market, a slight increment of VND200,000/ton ($8.5/ton) on a weekly comparison was recorded on local PP Homo Raffia offers. Sources added that some deals were concluded at VND22,000,000/ton ($940/ton) on cash, FD Ho Chi Minh basis, and including 10% VAT, which is at VND600,000/ton ($26/ton) lower from the initial offer level. From the import market, the offers for PP Homo Raffia and PP Homo Injection of Thailand origin increased by $30/ton and $10/ton respectively from last week. Contrastingly, the offers for Saudi PP Homo Raffia captured lower by $10/ton compared to the same period. Despite the downward adjustment, buyers were unwilling to make procurement due to an expectation for a lower price in the days to come. Other sources revealed that the import offers for Saudi PP Homo Raffia cargoes remained stable from last week at $830/ton on LC at sight, CIF Vietnam Main Port basis but the availability is limited.
As reported to SSESSMENTS.COM, PP demand in the Vietnam market remains unchanged from last week. PP demand remains on a soft note as the sales for the finished product are still consistently slow. However, a few traders stated that the demand from their end is slightly improving from last week. On the supply side, there were no issues reported in the country.
For the outlook, some sources opined to SSESSMENTS.COM that there is a possibility for local and import PP prices to increase further following the uptrend in polypropylene prices. In contrast, some sources predict that the current uptrend in prices will most likely be unable to sustain since the fundamental factor, which is the finished product demand remains sluggish.
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