Vietnam’s local homo-PP market hits highest levels since Aug 2015
Although players operating in Vietnam’s local PP market concur that demand is weak due to current high prices, they think that the supply restrictions from the Middle East and high propylene prices on FOB Korea basis, which are more than $100/ton higher than early February to be currently reported at $999/ton, are pushing local prices higher.
Source: ChemOrbis Price Wizard
A trader commented, “Local PP prices have been steadily increasing since the end of the Chinese New Year holiday and homo PP prices already hit above the 30,000,000VND/ton ($1208/ton) threshold. We believe that there is still room for further small increases considering supply constraints from the Middle East as well as higher costs.”
A converter stated that homo PP raffia prices rose by around 2,000,000VND/ton ($88/ton) after the Chinese New Year, which is beyond their anticipation.”We prefer to adopt a wait and see stance for now in order to observe whether prices will move down or not at the beginning of March as we stocked up before the holiday,” he said.
Currently, homo PP raffia and injection prices in the local market are standing at VND30,000,000-30.300.000/ton FD Vietnam, cash including VAT basis, $1208-1220/ton without VAT.
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