20 June, 2018
In Vietnam, PP sellers have been facing resistance to their efforts to keep the market on a firm note recently. Buyers either stay on the sidelines or limit their purchases to their urgent needs, citing low demand towards their end products during to off-season. Comfortable supplies as well as the recent fluctuations in crude oil futures have also contributed to the softer sentiment for PP.
Homo-PP raffia prices in the country’s local market have slightly softened this week as a result of buyers’ growing resistance to the prevailing offer levels, which are mostly deemed too high.
A packaging converter commented, “PP prices are currently standing at quite high levels and we are struggling to reflect higher costs onto our end product prices. Demand from our customers is not doing well given the low season.”
A second Vietnamese buyer also noted, “We are not making any purchases beyond our immediate needs for the moment as we think that PP prices should see further downward adjustments. Demand may not recover until around mid-July.”
Players also report that domestic PP supplies are more than comfortable since Nghi Son Refinery has begun trial runs at its new 400,000 tons/year PP plant.
Meanwhile, PP offers on CIF terms have also recorded some slight decreases so far. A South Korean trader cut its PP prices to the country by $10-20/ton from last week, saying “Our offers moved lower in the face of stagnant demand along with the softening in the energy markets.” A Vietnam-based trader added, “We are receiving lower bids from buyers nowadays. As we expect to see further decreases, we are not planning to make new purchases for now.”