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QuarterlySSESSMENTS: Q1 2020 Vietnam PP Prices

Author: SSESSMENTS

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  • Local PP Homo Raffia offers broke below VND27,000,000/ton-level in January
  • Overall demand remained on a bearish tone
  • Outlook remains pessimistic

SSESSMENTS.COM’s data showed that the Vietnamese PP market took swings up and down at the beginning of Q1 2020. In January, local PP Homo Raffia prices captured stable to firmer between VND500,000-1,000,000/ton ($21-42/ton) on a weekly basis. As for localized cargoes, offers for the Middle East and Southeast Asia origin cargoes were available at VND1,000,000/ton ($42/ton) higher than the offer level in December. In the second half of the month, local PP Homo Raffia prices had broken below VND27,000,000/ton-threshold level in the midst of Tet holiday celebration (Vietnamese Lunar New Year). From the import market, overall import prices of Middle East, Indian Subcontinent, and Southeast Asia origin edged higher between $10-30/ton on a weekly basis.

As stated to SSESSMENTS.COM, local PP prices in Vietnam showed a mixed trend during February. On the week commencing February 3, local PP offers in Vietnam recorded a slight increase as the level back to VND27,000,000/ton-threshold as the market resumed from the Lunar New Year Holiday. In general, local PP Homo Raffia prices recorded stable to softer between VND200,000-600,000/ton ($8-25/ton) on a weekly comparison. As for localized cargoes, offers for PP Homo Raffia cargoes of China, Indian Subcontinent, and Southeast Asia origin were available between VND400,000-500,000/ton ($17-21/ton) on a weekly basis. From the import market, overall import PP offers of various origins to Vietnam dipped between $10-50/ton on a weekly comparison. Following the relatively stable prices in China domestic market, in the final week of February, some Chinese traders initiated a price increase of between $10-30/ton for PP Homo Raffia to Vietnam market from offers available a week earlier. 

In March, local PP offers in Vietnam showed different trends each week. In general, local PP offers captured stable to softer between VND500,000-1,000,000/ton ($21-42/ton) on a weekly basis. Sluggish demand in the market and slump in crude oil prices was cited as a factor pushing the trader to lower their offers. During the month, overall local Homo Raffia offers were available below VND27,000,000/ton-level. From the import market, most import offers have broken below $900/ton-level as crude oil prices plunged to multi-year lows following the escalation in tensions between Russia and Saudi Arabia.

In general, demand for PP resins in Vietnam was on a slippery slope during the first quarter of 2020. In January, trading activities in Vietnam remained muted in the second half of the month as most market participants left their desks for the Tet holiday (Vietnamese Lunar New Year). In February, overall demand in Vietnam’s PP market was sluggish on the back of slow sales for end-products, concern over the Coronavirus outbreak, the anticipation of lower prices, and sufficient inventory on hand. In March, growing concern over the Coronavirus outbreak and Saudi-Russia’s oil price war also took a toll on the economy, pushed the PP market into a slowdown and led to rising uncertainties. In the production sector, some local factories reported still operating at a normal rate despite growing concern over the Coronavirus outbreak. 

Entering Q1 2020, market participants in Vietnam expressed an opinion to SSESSMENTS.COM that the overall outlook for PP prices and demand in the country would remain bearish if most buyers amid market uncertainties and global headwinds.

Range of local/localized PP transactions in January, FD Vietnam basis (VND terms include 10% VAT, all equivalent in USD excludes VAT)

OriginProductTransaction TypeCurrencyOffers/ton)Equivalent in USD/tonPayment Term
South KoreaPP Homo InjectionOffer GivenVND27,000,000-27,200,0001,036-1,044Cash In Advance
South KoreaPP Homo InjectionOffer ReceivedVND26,800,0001,02915 Days Credit Term
SaudiPP Homo RaffiaBuy IdeaVND27,000,0001,036TT
SaudiPP Homo RaffiaOffer ReceivedVND27,400,000-27,500,0001,052-1,056TT
South KoreaPP Homo RaffiaOffer GivenVND27,000,000-27,200,0001,036-1,044Cash In Advance
Southeast AsiaPP Homo RaffiaBuy IdeaVND27,000,0001,036TT
Southeast AsiaPP Homo RaffiaOffer ReceivedVND26,000,000-26,500,000998-1,017Cash In Advance
Southeast AsiaPP Homo RaffiaOffer ReceivedVND27,400,000-27,500,0001,052-1,056TT
ThailandPP Homo RaffiaOffer GivenVND27,000,0001,036Cash In Advance
VietnamPP Homo RaffiaBuy IdeaVND26,400,000-27,000,0001,013-1,036Cash In Advance
VietnamPP Homo RaffiaOffer GivenVND27,000,0001,03615 Days Credit Term
VietnamPP Homo RaffiaOffer ReceivedUSD1,000-Cash In Advance
VietnamPP Homo RaffiaOffer ReceivedVND26,400,000-28,000,0001,013-1,075Cash In Advance
VietnamPP Homo RaffiaPurchasedVND27,000,0001,036Cash In Advance

Range of import PP transactions in January on LC at sight, CIF/CFR Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerOffer Given1,040
Far East AsiaPP Block CopolymerSold1,090
Middle EastPP Block CopolymerPurchased950
Southeast AsiaPP Block CopolymerOffer Given1,040-1,150
Southeast AsiaPP Homo FilmOffer Given1,040-1,100
Southeast AsiaPP Homo FilmOffer Given1,080
Southeast AsiaPP Homo FilmSold1,060
ChinaPP Homo InjectionOffer Received970
Far East AsiaPP Homo InjectionOffer Given990
Far East AsiaPP Homo InjectionPurchased970
Middle EastPP Homo InjectionBid Received990
Middle EastPP Homo InjectionOffer Given990-1,000
Southeast AsiaPP Homo InjectionBuy Idea990
Southeast AsiaPP Homo InjectionOffer Given1,000-1,010
Southeast AsiaPP Homo InjectionOffer Given1,070-1,100
Southeast AsiaPP Homo InjectionOffer Received1,000-1,050
Southeast AsiaPP Homo InjectionSold1,030-1,070
ChinaPP Homo RaffiaOffer Given1,000
ChinaPP Homo RaffiaOffer Received960-975
Far East AsiaPP Homo RaffiaOffer Given990-1,010
Far East AsiaPP Homo RaffiaOffer Received980-1,010
Far East AsiaPP Homo RaffiaSold1,000
Indian SubcontinentPP Homo RaffiaBuy Idea960
Indian SubcontinentPP Homo RaffiaOffer Received970-1,000
Indian SubcontinentPP Homo RaffiaSold990-1,000
Middle EastPP Homo RaffiaBid Received970
Middle EastPP Homo RaffiaOffer Given980-1,000
Middle EastPP Homo RaffiaOffer Received980-1,020
Middle EastPP Homo RaffiaPurchased970
Middle EastPP Homo RaffiaSold990
Southeast AsiaPP Homo RaffiaBid Received990
Southeast AsiaPP Homo RaffiaOffer Given1,000-1,010
Southeast AsiaPP Homo RaffiaOffer Given1,020-1,100
Southeast AsiaPP Homo RaffiaOffer Received1,020-1,050
Southeast AsiaPP Homo RaffiaPurchased1,040
Southeast AsiaPP Homo RaffiaSold1,030-1,070
Southeast AsiaPP Random Copolymer InjectionOffer Given1,210

Range of local/localized PP transactions in February on FD Vietnam basis (VND terms include 10% VAT, all equivalent in USD excludes VAT)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonPayment Term
ChinaPP Homo RaffiaOffer Received26,800,000-27,200,0001,029-1,044Cash In Advance
IndiaPP Homo RaffiaOffer Received25,500,000979Cash In Advance
Middle EastPP Homo RaffiaBuy Idea24,500,000940Cash In Advance
Middle EastPP Homo RaffiaOffer Received26,000,000-26,200,000998-1,006Cash In Advance
SaudiPP Homo RaffiaOffer Given26,800,0001,029Cash In Advance
SaudiPP Homo RaffiaOffer Given27,200,0001,04420 Days Credit Term
SaudiPP Homo RaffiaOffer Received26,600,000-26,800,0001,021-1,029Cash In Advance
ThailandPP Homo RaffiaOffer Received26,600,000-27,200,0001,021-1,044Cash In Advance
VietnamPP Homo RaffiaBid Given25,700,000986Cash In Advance
VietnamPP Homo RaffiaBuy Idea25,800,000990Cash In Advance
VietnamPP Homo RaffiaOffer Given25,500,000979Cash In Advance
VietnamPP Homo RaffiaOffer Received24,700,000-27,000,000948-1,036Cash In Advance
VietnamPP Homo RaffiaPurchased25,800,000990Cash In Advance

Range of import PP transaction in February on LC at sight, CIF/CFR Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerOffer Received1,020
Far East AsiaPP Block CopolymerSold1,050-1060
Middle EastPP Block CopolymerPurchased980
Southeast AsiaPP Homo FilmOffer Given1,040-1,110
Far East AsiaPP Homo InjectionBid Received980
Far East AsiaPP Homo InjectionOffer Given930
Far East AsiaPP Homo InjectionOffer Received1,020
Middle EastPP Homo InjectionOffer Received920-980
Southeast AsiaPP Homo InjectionBuy Idea1,060-1,070
Southeast AsiaPP Homo InjectionOffer Given980-1,080
Southeast AsiaPP Homo InjectionSold1,070
Central AsiaPP Homo RaffiaOffer Received980-990
ChinaPP Homo RaffiaBid Received900-925
ChinaPP Homo RaffiaBid Received940
ChinaPP Homo RaffiaOffer Given900-985
ChinaPP Homo RaffiaOffer Given990
ChinaPP Homo RaffiaOffer Received910-980
ChinaPP Homo RaffiaPurchased910-920
ChinaPP Homo RaffiaSold920-950
Far East AsiaPP Homo RaffiaBid Received950-980
Far East AsiaPP Homo RaffiaBuy Idea1,000
Far East AsiaPP Homo RaffiaOffer Given930-990
Far East AsiaPP Homo RaffiaOffer Received930-1,025
Far East AsiaPP Homo RaffiaPurchased990
Indian SubcontinentPP Homo RaffiaOffer Given930-1,010
Indian SubcontinentPP Homo RaffiaOffer Received930-950
Indian SubcontinentPP Homo RaffiaSold900-930
Middle EastPP Homo RaffiaOffer Given930-1,000
Middle EastPP Homo RaffiaOffer Received910-1,020
Middle EastPP Homo RaffiaPurchased990
Middle EastPP Homo RaffiaSell Idea910-920
Middle EastPP Homo RaffiaSold930
Southeast AsiaPP Homo RaffiaBid Received900-980
Southeast AsiaPP Homo RaffiaBuy Idea1,060-1,070
Southeast AsiaPP Homo RaffiaOffer Given940-1,080
Southeast AsiaPP Homo RaffiaOffer Received980-1,080
Southeast AsiaPP Homo RaffiaSold1,070
Far East AsiaPP Random Copolymer ExtrusionOffer Received1,190
Middle EastPP Random Copolymer ExtrusionOffer Received1,050

Range of local/localized PP transactions in March on cash, FD Vietnam basis (VND terms include 10% VAT, all equivalent in USD excludes VAT)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/ton
VietnamPP Homo RaffiaOffer Given23,000,000-25,000,000883-960

Range of import PP transaction in March on LC at sight, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Middle EastPP Block CopolymerPurchased850
Southeast AsiaPP Homo FilmOffer Given905-950
Southeast AsiaPP Homo FilmSold925
Southeast AsiaPP Homo InjectionBid Received980
Southeast AsiaPP Homo InjectionOffer Given920-1,010
Southeast AsiaPP Homo InjectionSold980
ChinaPP Homo RaffiaBid Received870-880
ChinaPP Homo RaffiaBuy Idea880
ChinaPP Homo RaffiaOffer Given850-940
ChinaPP Homo RaffiaOffer Received780-950
ChinaPP Homo RaffiaSell Idea900
ChinaPP Homo RaffiaSold900
Far East AsiaPP Homo RaffiaOffer Given820-830
Far East AsiaPP Homo RaffiaOffer Received840-930
Far East AsiaPP Homo RaffiaPurchased920-930
Indian SubcontinentPP Homo RaffiaBuy Idea880
Indian SubcontinentPP Homo RaffiaOffer Given900
Indian SubcontinentPP Homo RaffiaOffer Received800-810
Indian SubcontinentPP Homo RaffiaSell Idea920
Middle EastPP Homo RaffiaBid Received850-880
Middle EastPP Homo RaffiaOffer Given950
Middle EastPP Homo RaffiaOffer Received930-950
Middle EastPP Homo RaffiaPurchased960
Middle EastPP Homo RaffiaSell Idea850-870
Middle EastPP Homo RaffiaSold930-950
Southeast AsiaPP Homo RaffiaBid Received820-980
Southeast AsiaPP Homo RaffiaOffer Given825-1,010
Southeast AsiaPP Homo RaffiaOffer Received825-840
Southeast AsiaPP Homo RaffiaPurchased810
Southeast AsiaPP Homo RaffiaSold825-980

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

Published on April 11, 2020 9:47 PM (GMT+8)
Last Updated on April 11, 2020 9:48 PM (GMT+8)

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