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Several overseas sellers decided to lift import homo-PP to Southeast Asia this week regardless of the absence of Chinese buyers. The lack of inventories pressure coupled with stronger upstream energy and propylene costs play a major role in the latest hike, however, buyers are still very cautious.

A Thailand maker lifted import homo-PP yarn by $20/ton from last week to Vietnam to $1285/ton CIF, LC AS. Respond is not very healthy. Despite the fact that upstream propylene costs have increased evidently and energy complex reaches multi-year high levels, buyers just too conservative. “This is because end product demand is not strong. We are looking at South Korean cargoes that offered at $15/ton lower,” a woven bag maker informed.

Meanwhile, Vietnamese homo-PP emerged in Indonesia at $10-20/ton higher at $1280-1290/ton CIF Indonesia, LC AS. The supplier claimed to have no sales pressure at the moment after achieving excellent sales result in China market. “We sold additional 5000 tons of Vietnamese homo-PP cargoes to China last Saturday and therefore, we have very little remaining allocation for October,” the trader informed. 

Similar to the demand situation in Vietnam, Indonesia buyers are not very eager in making fresh replenishment. The current exchange rate makes it more expensive to buy imports while buyers with BMDTP have stocked up comfortable inventories until the end of the year. “We prefer to wait and see on the sideline at the moment. Depending on the demand condition in the post-holiday term in China, we do not expect to see any major hike in prices,” a woven bag maker said while adding having inventories until the end of December. 

At the time this report is published, import homo-PP yarn to Southeast Asia has reached $1260-1290/ton CIF, LC AS.