Demand doldrums weaken Vietnam’s PP market, import prices hit 9-month low

Vietnam’s PP market continues to struggle due to sluggish demand, which remains the main factor behind the current weakness. Downstream manufacturing plants have seen a drop in orders from end users, reducing converters’ interest in buying PP polymers. Meanwhile, an oversupply has further clouded the market outlook.

Import price at more than 9-month low

As of the week ending on October 4, import homo-PP raffia and inj. prices from all origins were assessed $10-20/ton lower from the previous week, at $930-960/ton CIF Vietnam, cash. The latest decrease came after a six-week stability, with the weekly midpoint of import prices hitting the lowest level since late December 2023, data obtained from ChemOrbis Price Index suggest.

Local materials were traded at VND26,300,000-26,800,000/ton ($972-991/ton without VAT) FD Vietnam, cash including VAT, indicating a rollover from a week earlier.



Sluggish demand dampens trading

The market sentiment was dominated by weak demand. Traders noted that downstream buyers were showing little buying interest, while buyers cited low end-user demand, prompting them to either make essential purchases only or take a wait-and-see approach.

A trader commented, “A demand slowdown persists, with buyers limiting offtake volumes or opting to consume their current inventory rather than making new purchases. We continue to import as usual, but business is worse than last year.”

However, the domestic market saw a glimmer of hope as demand ticked up slightly compared to the previous month. “The market is quiet as sellers are waiting for Chinese players to return after the Golden Week holiday. Domestic demand has improved slightly on a monthly basis,” added another trader.

Potential pressure from rising availability

Along with the persistent sluggish demand, an oversupply also dimmed sellers’ confidence. “Supply remains long across global PP markets,” said a source from a Taiwanese producer.

A local producer’s capacity expansion also contributed to increased availability. According to market sources, the plant’s capacity was ramped up to 120% and restarted during the week ending October 4, following a brief maintenance shutdown last month.

Moreover, China’s markets typically reopen after the holiday with accumulated inventories. If Chinese demand remains weak, excess availability could flow into nearby Vietnam, adding further supply pressure. Currently, offers for Chinese homo-PP raffia and injection at $930-940/ton CIF are already forming the low end of Vietnam’s import range.

A double whammy of stagnant demand and ample supply is weighing heavily on market sentiment, with players expecting prices to remain stable or soften in the near term.