Vietnam’s PPH raffia market breaks below $900 CIF level on low end

Vietnam’s import homo-PP market has resumed its downward trend after a week of stability, witnessing slightly lower offers particularly in the low end of the price range.

As per ChemOrbis Price Index data, the market has been following a stable to mostly lower trend since the final week of September. The weekly average of homo-PP raffia prices has recorded a cumulative loss of 11% during this period, reaching its lowest level since mid-July.

S. Korean raffia dealt below $900 CIF

South Korean shipments have been offering a competitive edge over the past couple of weeks, mostly forming the low end of the market.

This week, a trader reported that they concluded a PPH raffia deal for the origin at $880/ton CIF, cash. “Korean shipments were initially offered at $900/ton, but completed deals settled around $880/ton CIF. There is a belief that market levels could further decline due to overall weak demand, prompting many buyers to adopt a wait-and-see approach,” he said.

The last time raffia offers below the $900/ton threshold were reported was mid-July.

Offers from Mid-East and China stand above Korean shipments

Meanwhile, traders noted that homo-PP raffia offers for Saudi and Chinese shipments were still not as competitive as the Korean origin. The lowest levels reported by players were at $920/ton for Saudi shipments and at $950/ton for Chinese cargoes, all on CIF Vietnam, cash basis.

“We think that offers from China and the Mid-East will further decrease as they cannot match the current competitive levels. We will only consider replenishing if we see attractive prices for these,” said a trader.