Chinese exports continue to pressure Vietnam's PP market

PP players in Vietnam reported that homo-PP prices from China continued to put pressure on the lower ends of the market, offering a competitive edge against the other mainstream origins, including Middle East and South Korea.

For the week ending on May 17, import prices for homo-PP raffia and inj. grades from all sources were assessed stable at the high end and $10/ton lower at the low end from a week ago at a range of $970-1050/ton CIF Southeast Asia, cash. Chinese offers remained at the lower end, while Mid-Eastern origins stood at $1000-1030/ton. In Vietnam, Chinese homo-PP raffia offers were available for as low as $950/ton CIF, cash.

“We received lower offers from China this week, which are quite close to local prices. Offers from other origins are too high to accept at the moment compared to Chinese or domestic prices. End-product demand remains stable. Therefore, we still prefer to make purchases based on our needs,” commented a Vietnamese converter.

Players expect Chinese exports to keep weighing on the Vietnam PP market over the coming months due to expanding production capacities in China. A trader noted, “The presence of ample Chinese origins is likely to continue to put pressure on the homo-PP raffia and injection markets, limiting potential price increases from sellers of other major origins.”