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MonthlySSESSMENTS: June Vietnam PP Prices

Author: SSESSMENTS

  • Local PP offers on the same trend during June
  • Market players called import PP Homo Raffia offers from a certain origin as ridiculous
  • PP demand remained on a soft note throughout June 

During June, local and localized PP offers in the Vietnam market were mostly on an uptrend, in line with the international market trend. However, SSESSMENTS.COM was told that a local producer attempted to keep offers competitive by avoiding significant upward adjustments. The producer even applied a downward adjustment of VND500,000/ton ($21/ton) on their offers for PP Homo Raffia in the week commencing June 22 when other suppliers in the country increased offers for the same product. In the first week of June, offers for local PP Homo Raffia and PP Homo Injection increased by VND100,000/ton ($4/ton) and VND200,000/ton ($8/ton) respectively. Meanwhile, offers for localized PP Homo Injection cargoes from Saudi went up by VND500,000/ton ($21/ton). In the following week, further upward adjustments between VND500,000-1,000,000/ton ($21-43/ton) were captured for local PP Homo Raffia offers. In the week commencing June 15, local PP Homo Raffia offers increased again by VND400,000/ton ($17/ton) and already reached VND26,000,000/ton ($1,117/ton) on cash, FD Vietnam basis and including 10% VAT. In the same week, offers for localized PP Homo Raffia from Saudi increased by VND1,000,000/ton ($43/ton). In the fourth week of the month, another price increment of VND300,000/ton ($13/ton) on local PP Homo Raffia was recorded. All changes were on a weekly comparison.

From the import market, upward movements were mostly seen in the first half of the month while in the second half, offers for some origins were captured stable on a weekly comparison. In the first week of June, SSESSMENTS.COM was informed that PP Homo Raffia offers from Thai producers increased between $30-50/ton while offers for the grade from Saudi also increased between $30-40/ton. In the second week, a Thai producer increased offers for PP Homo Raffia further by $50/ton citing limited allocation. Likewise, PP Homo Raffia offers from Saudi hiked by $60/ton. In the third week, PP Homo Raffia offers from India were stable to increase by $20/ton. In the same week, Middle Eastern PP Homo Raffia cargoes offered between $20-30/ton higher. In the week commencing June 22, offers for Thailand PP Homo Raffia stood at $1,050/ton on LC at sight, CIF Vietnam main port basis. Market players called such a level ridiculously high. As for Middle East origin, offers for PP Homo Raffia in this particular week were stable. All were also on a weekly comparison.

PP demand in Vietnam remained on a soft note throughout June as sales for converters’ end-products were still slow. The rainy season has impacted the end-product sales. Some converters were only running between 40-50% of the normal operating rate. Besides, high offer levels discouraged buyers from making purchases. Some converters with sufficient inventory on hand were not interested in making procurements and preferred to monitor market movements. On the supply side, Thai producers had limited allocation to Vietnam during the month, but no issues were reported to SSESSMENTS.COM on local supply. In the production sector, market talks have it that Nghi Son Refinery and Petrochemical (NSRP) is currently running at 70% of normal capacity and plans to run at full capacity in August. According to rumour, Binh Son Refinery and Petrochemical (BSR) will have maintenance shutdown in July and August. However, no confirmation and further details regarding the matter up to the time of publication.

Looking ahead, market players contacted by SSESSMENTS.COM opined that PP offers in the Vietnam market will decrease in July due to unsupportive demand following slow sales of end-products amid the intensifying rain in the particular month.

Range of local/localized PP offers between June 1 to June 5 on cash, FD basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
Saudi ArabiaPP Homo InjectionOffer Received24,500,000957Ho Chi Minh
ThailandPP Homo InjectionOffer Received24,700,000-25,000,000964-976Ho Chi Minh
VietnamPP Homo InjectionOffer Received24,200,000945Ho Chi Minh
VietnamPP Homo InjectionPurchased24,200,000945Ho Chi Minh
VietnamPP Homo RaffiaOffer Received23,100,000-24,000,000902-937Ho Chi Minh
VietnamPP Homo RaffiaOffer Received24,500,000-25,500,000957-996Haiphong
VietnamPP Homo RaffiaPurchased24,500,000957Haiphong
VietnamPP Homo RaffiaSell Idea23,700,000925Haiphong

Range of import PP offers between June 1 to June 5 on LC at sight, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Middle EastPP Block CopolymerOffer Received820-850
Middle EastPP Homo InjectionPurchased1,040
Middle EastPP Homo InjectionSell Idea990-1,000
Southeast AsiaPP Homo InjectionOffer Given950
Southeast AsiaPP Homo InjectionSell Idea990-1,000
ChinaPP Homo RaffiaOffer Received900
Far East AsiaPP Homo RaffiaOffer Received950
Indian SubcontinentPP Homo RaffiaOffer Given880
Indian SubcontinentPP Homo RaffiaOffer Received900
Middle EastPP Homo RaffiaOffer Received860-930
Middle EastPP Homo RaffiaBid Received870
Middle EastPP Homo RaffiaPurchased920
Middle EastPP Homo RaffiaSold870
Southeast AsiaPP Homo RaffiaOffer Received970-990

Range of local/localized PP offers between June 8 to June 12 on cash, FD basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
VietnamPP Homo RaffiaOffer Given24,800,000-26,000,000968-1,015Haiphong
VietnamPP Homo RaffiaOffer Received24,500,000957Haiphong
VietnamPP Homo RaffiaOffer Received25,000,000976Ho Chi Minh
SaudiPP Homo RaffiaOffer Given25,500,000996Ho Chi Minh
ThailandPP Homo RaffiaOffer Given24,800,000968Ho Chi Minh
South KoreaPP Random CopolymerOffer Received29,000,0001,132Ho Chi Minh

Range of import PP offers between June 8 to June 12 on LC at sight, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
North AmericaPP Block CopolymerPurchased1,190***
Indian SubcontinentPP Homo FilmOffer Received945**
Far East AsiaPP Homo FilmOffer Received980*
Middle EastPP Homo InjectionOffer Given900
Southeast AsiaPP Homo InjectionOffer Given1,000
Indian SubcontinentPP Homo RaffiaOffer Given920
Indian SubcontinentPP Homo RaffiaOffer Received920**
Middle EastPP Homo RaffiaOffer Given900-930
Middle EastPP Homo RaffiaOffer Received880-920
Middle EastPP Homo RaffiaSold880-930
Middle EastPP Homo RaffiaBid Received920
Southeast AsiaPP Homo RaffiaOffer Received920*-1,000
Description: *July shipment offers **August shipment offers ***Special grade

Range of local/localized PP offers between June 15 to June 19 on cash, FD basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
SaudiPP Block CopolymerOffer Given28,500,0001,113Ho Chi Minh
South KoreaPP Homo RaffiaOffer Given25,000,000976Haiphong
VietnamPP Homo RaffiaOffer Given25,300,000988Ho Chi Minh
VietnamPP Homo RaffiaOffer Given25,200,000984Haiphong
VietnamPP Homo RaffiaOffer Received24,600,000-24,800,000960-968Ho Chi Minh
VietnamPP Homo RaffiaOffer Received25,080,000-26,000,000979-1,015Haiphong
VietnamPP Homo RaffiaSell Idea26,500,0001,035Haiphong
SaudiPP Homo RaffiaOffer Given26,000,0001,015Ho Chi Minh
SaudiPP Homo RaffiaSell Idea26,500,0001,035Ho Chi Minh
South KoreaPP Homo RaffiaOffer Given25,000,000976Haiphong
SaudiPP Random Copolymer InjectionOffer Given32,000,0001,249Ho Chi Minh

Range of import PP offers between June 15 to June 19 on LC at sight, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerOffer Given980
Middle EastPP Homo InjectionOffer Received980
Indian SubcontinentPP Homo InjectionOffer Given920-930
Middle EastPP Homo InjectionBuy Idea890-900
Middle EastPP Homo InjectionOffer Given920-930
Middle EastPP Homo InjectionOffer Received930
Southeast AsiaPP Homo InjectionOffer Given1,030
Far East AsiaPP Homo RaffiaOffer Received940-950
Indian SubcontinentPP Homo RaffiaOffer Given900*-930
Middle EastPP Homo RaffiaBuy Idea890-900
Middle EastPP Homo RaffiaOffer Given910-930
Middle EastPP Homo RaffiaOffer Received930
Middle EastPP Homo RaffiaSold910-930
Southeast AsiaPP Homo RaffiaOffer Given940*
Southern AfricaPP Homo RaffiaSold900
Description: *Offers for July shipment

Range of local/localized PP offers between June 22 to June 26 on cash, FD basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
SaudiPP Block CopolymerOffer Given28,500,0001,113Ho Chi Minh
MalaysiaPP Homo FilmSold26,600,0001,039Ho Chi Minh
South KoreaPP Homo FilmOffer Given26,600,000-27,000,0001,039-1,054Ho Chi Minh
ThailandPP Homo FilmSell Idea28,000,0001,093Ho Chi Minh
SaudiPP Homo RaffiaOffer Given26,000,0001,015Ho Chi Minh
SaudiPP Homo RaffiaOffer Given25,500,000-25,800,000996-1,007Haiphong
South KoreaPP Homo RaffiaSold25,500,000996Haiphong
ThailandPP Homo RaffiaOffer Received27,600,0001,078Ho Chi Minh
VietnamPP Homo RaffiaOffer Received24,300,000-26,300,000949-1,027Ho Chi Minh
VietnamPP Homo RaffiaPurchased24,200,000945Ho Chi Minh
VietnamPP Homo RaffiaOffer Received26,300,0001,027Haiphong
SaudiPP Random Copolymer InjectionOffer Given32,000,0001,249Ho Chi Minh

Range of import PP offers between June 22 to June 26 on LC at sight, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Middle EastPP Block CopolymerOffer Given1,020*
Middle EastPP Homo FilmOffer Received1,030
Far East AsiaPP Homo InjectionOffer Received940*
Middle EastPP Homo InjectionOffer Received930
Southeast AsiaPP Homo InjectionOffer Given1,030
Far East AsiaPP Homo RaffiaOffer Received940*
Indian SubcontinentPP Homo RaffiaOffer Received930
Middle EastPP Homo RaffiaOffer Given930
Middle EastPP Homo RaffiaOffer Received920-1,000
Middle EastPP Homo RaffiaBid Received920
Middle EastPP Homo RaffiaSold930
Southeast AsiaPP Homo RaffiaOffer Given1,050
Southern AfricaPP Homo RaffiaBid Received920
Description: *Offers for July shipment

Range of localized PP offers between June 29 to June 30 on cash, FD basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
ChinaPP Homo RaffiaOffer Received24,500,000-25,000,000957-976Haiphong
IndiaPP Homo RaffiaOffer Received24,500,000-25,000,000957-976Haiphong

Range of import PP offers between June 29 to June 30 on LC at sight, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Middle EastPP Block CopolymerOffer Received1,040
Far East AsiaPP Homo RaffiaOffer Received1,000
Middle EastPP Homo RaffiaOffer Received970
Description: *All offers for July shipment

Tags: Asia Pacific,English,Monthly,PP,SEA,Vietnam

Published on June 30, 2020 5:41 PM (GMT+8)
Last Updated on July 1, 2020 1:39 PM (GMT+8)