Vietnam’s local homo-PP market retreats further on weak demand
Both sellers and buyers concurred that the downward trend in China exerted pressure on Vietnam’s local homo-PP market, which sank to its lowest levels since around March in line with the latest round of decreases, according to data from ChemOrbis Price Index.
As can be seen in the graph below , homo-PP raffia prices on FD Vietnam basis have failed to sustain a slight firming that was mostly in place during October.
“Both import and local PP prices decreased further given muted demand and high domestic supplies. The downtrend of China is affecting the sentiment in Vietnam. Buyers refrain from making any large-scale purchases believing that prices still have room for further declines,” a trader commented.
In addition to these factors, lower spot propylene prices in Asia also weighed on regional PP markets, some added.
A Vietnamese trader noted that he received almost no inquiries from the local market even after cutting his homo-PP raffia offers further from the previous week.
On the buyers’ side, a woven bag manufacturer opined, “Demand towards our end-products remains weak despite the approaching end of the year. We were expecting our export sales to improve due to the China-US trade war. However, we heard that Chinese bag exporters will be able to run their business with the US. In this case, we aren’t planning to secure any PP cargoes beyond our urgent needs for now. We think that the local PP market might see additional drops in the days ahead.”
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