Re-export PP from China available below $1100 in Vietnam

Players across Southeast Asian’s PP market, particularly in Vietnam, have been widely reporting the existence of re-export cargoes from China since early March as a result of high inventory levels as well as poor demand in the country.

This week, the latest re-export offers from China moved lower and broke below the $1100/ton threshold.

A trader, offering US homo PP injection to the Vietnamese market at $1080/ton CFR, cash basis noted, “Our offer inched down by $5/ton from yesterday and we are concluding a good number of deals.”

Another trader commented, “As we think that China’s PP market is under pressure due to the overcapacity issues, we are focusing on re-export activities. The buying interest for import cargoes is quite slow as local prices are more competitive.”

A third trader reported relatively lower offers for US and Saudi PP raffia respectively at $1030/ton and at $1020/ton, all on a CIF Vietnam, cash basis.