Local PP prices in Vietnam slide further; import market almost at standstill
Local market plunges to 4-year low
Data from ChemOrbis Price Index reveal that the weekly average of homo-PP prices on FD Vietnam basis has plunged to its lowest level since February 2016.
On a week over week basis, local homo-PP prices witnessed fresh losses of around VND800,000/ton ($34/ton), players reported. The latest round of declines has been attributed to a combination of muted demand, recently added domestic capacities as well as plunging crude oil futures.
“The decline in demand amid the coronavirus threat mainly dragged down local PP prices. We refrain from purchasing beyond our urgent needs given the possibility of further price cuts in the near term,” a converter commented.
Several end product manufacturers in the country noted that demand from their customers in China has been almost absent since the outbreak started. Inside Vietnam, however, demand towards end products has been gradually improving.
Number of import offers declines
Players in Vietnam reported that the number of import PP offers has been quite limited since crude oil futures slumped on Monday. “Activity in the import market has been almost at a standstill with sellers adopting a wait-and-see stance,” a buyer said.
A seller opined, “It is still early to gauge the impact of the notable loss in crude oil prices. PP suppliers would first likely to ascertain how the oil slump may affect monomer prices and regional demand. Hence they refrain from giving offers this week. We will get a clearer picture of the import market next week.”
In the meantime, crude oil futures settled 8-10% higher on March 10, rebounding from Monday’s historic fall amid hopes for renewed OPEC+ production cut talks and stimulus measures taken by several countries to deal with the effects of COVID-19.
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