Vietnam’s import PP raffia market hits lowest since late 2016
As can be seen in the ChemOrbis Price Wizard graph below, the country’s import PP raffia market has been following a largely decreasing trend since mid May if the short-lived uptick in July is disregarded. When compared to three months ago, the weekly average of prices has posted a cumulative decline of almost $150/ton.
Expectations of further price cuts keep buyers sidelined
Players blame poor demand for the ongoing downturn in prices with buyers staying cautious about making purchases beyond their needs in anticipation of seeing additional decreases over the upcoming term.
A Vietnamese trader commented, “Trading activity remains limited as buyers still refrain from making any large-scale purchases. Sellers are eager to give extra discounts of $10-20/ton in done deals. According to some, the PP market might stay in a stable to soft note until around mid September.”
Sentiment pressured by bearish China
China’s import PP raffia market has extended its losses as demand has failed to pick up for another week in the face of lower futures, high local supplies and the depreciation of the yuan. A trader based in China noted that several traders were offering further discounts to buyers in order to diminish their stocks.
“The ongoing downturn in China keeps Vietnam’s PP market under pressure as buyers believe that prices would not shift direction unless China firms up. The outlook is not strong amid trade threats, currency depreciations as well as growing fears over the global economy,” he opined.
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