Vietnam: Import homo-PP offers emerged visibly higher; deals see little changes

At the beginning of the week, several international producers implemented a hike of $10-20/ton on import homo-PP yarn to Vietnam citing tightening supply condition and better sales result to China market. However, the support does not appear to be strong enough, from which deals have been materialized at mostly stable to slightly firmer.

Initial offers are reported at $1260-1280/ton CIF Vietnam, LC AS term and deals emerge in the range $1230-1250/ton wit the same term.

It might be difficult for overseas sellers to immediately achieve the hike target at the first attempt; however, on a bright side, buyers started showing better acceptance than they were in the previous weeks, signalling that market is less likely to go any further down. 

“We sold Saudi homo-PP yarn at $1250/ton, a $30/ton reduction from initial price list – the level that many did not show any interest before. It is still the traditional slow season now, and therefore, prices might not be able to skyrocket,” an international trader said.

Meanwhile, a couple of buyers claimed to have secured some quantities for Indian homo-PP yarn at $1240/ton CIF Vietnam, “The producer has withdrawn the offers. If market response remains at the current rate, it is very likely that the supplier would implement further hike in the coming days,” another source added.

On the first trading day of the week, a Saudi Arabia maker suspended all offerings to Vietnam after sold out all available quantity to China at $1240/ton CFR, LC AS. Vietnamese buyers, who have been bidding for prices below this level are now disappointed with the outcome.