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QuarterlySSESSMENTS: Q2 2020 Vietnam PP Prices

Author: SSESSMENTS

  • Local and import PP offers mostly stride in tandem month over month during Q2
  • Improvement in demand was briefly seen in late May
  • Players foresee local PP prices to be dragged down by demand conditions

According to data gathered by SSESSMENTS.COM’s team, local offers for PP across all grades in the Vietnam market mostly captured stable to firmer during Q2 2020. In April, market talks have it that local PP Homo Raffia offers went up by VND1,000,000/ton ($43/ton) following the market uptrend in China. But some players said that PP Homo Raffia offers remained stable over the week. From imports, the leading Chinese polyolefins producers raised PP Homo Raffia offers by $20/ton in-line with upward momentum in the China domestic market. Similarly, Indian PP Homo Raffia offers were adjusted up between $10-20/ton. For Thailand and Saudi cargoes, offers for PP Homo Raffia moved higher between $40-60/ton and $30/ton, respectively. All price changes were on a weekly interval. For May shipment, Saudi PP Homo Raffia offers were between $150-170/ton higher compared to April. As for Thai PP Homo Injection cargoes, the offers stood at $865/ton on LC at sight, CIF Vietnam Main Port basis at the end of April.  

Moving to May, local offers for PP Homo Raffia were stable to firmer between VND200,000-500,000/ton ($8-21/ton) on a week-on-week comparison. Some deals were closed at VND600,000/ton ($24/ton) lower from the initial offer levels. In the import market, Saudi PP Homo Raffia offers stood at $820/ton, or lowered by $80/ton, with bids submitted at $70/ton lower from the initial offer levels. At that time, the bids gained no response from the producer. Meanwhile, the leading Malaysian polyolefins producer announced June shipment offers to Vietnam with an increase of between $10-30/ton for both PP Homo Raffia and PP Homo Injection. Likewise, import PP Homo Raffia offers from the leading Indian petrochemical producer were also hiked by $30/ton. As SSESSMENTS.COM noted, all import offers on a monthly comparison. Whereas import offers for Saudi PP Homo Raffia captured higher by $20/ton on the weekly comparison. 

In the last month of Q2 2020, local offers for PP Homo Raffia and PP Homo Injection recorded stable to firmer, with a range of increase between VND300,000-1,000,000/ton ($13-43/ton). However, in late June, one of the local producers adjusted down their offers for PP Homo Raffia by VND500,000/ton ($21/ton). For localized Saudi PP Homo Injection cargoes, the offers were captured stable to higher by VND500,000/ton ($21/ton). Whereas localized South Korean PP Homo Raffia cargoes remained stable. All offers were on a week-on-week comparison, SSESSMENTS.COM noted. For import cargoes, offers for PP Homo Raffia of India and Saudi origin at $900/ton and $930/ton respectively were deemed too high by buyers. Citing that workable offers for Saudi PP Homo Raffia should be between $830-860/ton-level, particularly for re-exporters. Meanwhile, Thai PP Homo Injection offers to Vietnam went up by $50/ton following the higher offers in Thailand’s domestic market. As for PP Homo Raffia of Thailand origin, the offers were captured on a stable level. Both changes in Thai cargoes were on a weekly comparison. For July shipment, offers for South Korean PP Homo Raffia surged between $70-80/ton from June.

As reported to SSESSMENTS.COM, demand for PP resins in Vietnam was generally sluggish during Q2 2020. In April, demand was highly affected by a partial lockdown imposed by the Vietnamese government in an attempt to tackle the spread of Coronavirus. At that time, even the uptrend in the China market was unable to stimulate the buying sentiment in the domestic market. However, a slight improvement in PP demand was briefly seen in late April as buyers were more willing to make procurements after the Vietnamese government decided to lift the lockdown. Moving to May and June, market sentiment was back to a bearish-tone due to manifold reasons such as slow demand for end-products, ample stocks on converters’ end, the rainy season, as well as buyers’ resistance towards high prices. On the production front, up until June, most Vietnamese converters were still running production at around 50% from the normal rate. Only manufacturers who produce essential products could run production at maximum capacity. Following the weak demand, no significant issues reported by Vietnamese market players regarding supply throughout Q2 2020.

For the outlook, market players contacted by SSESSMENTS.COM believe that local PP offers in the Vietnam market will start to decrease in Q3 2020. Citing that demand predicted to remain weak by then following the slow sales of converters’ finished products. Unless there are some particular events that could count as a stimulus to bolster demand in the days to come.

Transactions for local/localized PP in April on cash, FD Vietnam basis (including 10% VAT in VND term, all equivalent in USD excluding VAT)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/ton
South KoreaPP Homo InjectionOffer Given22,000,000858
VietnamPP Homo RaffiaOffer Given23,000,000897
VietnamPP Homo RaffiaPurchased21,000,000819

Transaction for import PP in April, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Far East AsiaPP Block CopolymerPrice List860-880LC at sight
Southeast AsiaPP Homo FilmOffer Given800-840LC at sight
Southeast AsiaPP Homo FilmOffer Received*880LC at sight
Southeast AsiaPP Homo FilmSold800-840LC at sight
ChinaPP Homo InjectionOffer Received820LC at sight
Far East AsiaPP Homo InjectionOffer Received820LC at sight
Middle EastPP Homo InjectionBid Received750-760LC at sight
Middle EastPP Homo InjectionOffer Given750LC at sight
Middle EastPP Homo InjectionSold750LC at sight
Southeast AsiaPP Homo InjectionOffer Given855-865LC at sight
Southeast AsiaPP Homo InjectionOffer Received790TT
Southeast AsiaPP Homo InjectionOffer Received850LC at sight
ChinaPP Homo RaffiaOffer Given800LC at sight
ChinaPP Homo RaffiaOffer Received770-820LC at sight
Far East AsiaPP Homo RaffiaOffer Received800-830LC at sight
Far East AsiaPP Homo RaffiaPrice List800LC at sight
Indian SubcontinentPP Homo RaffiaOffer Received770-820LC at sight
Middle EastPP Homo RaffiaBid Given730LC at sight
Middle EastPP Homo RaffiaBid Received730LC at sight
Middle EastPP Homo RaffiaBuy Idea750LC at sight
Middle EastPP Homo RaffiaOffer Given750LC at sight
Middle EastPP Homo RaffiaOffer Received740-900LC at sight
Middle EastPP Homo RaffiaSell Idea800LC at sight
Middle EastPP Homo RaffiaSold730LC at sight
Southeast AsiaPP Homo RaffiaBid Given720LC at sight
Southeast AsiaPP Homo RaffiaBid Received750LC at sight
Southeast AsiaPP Homo RaffiaOffer Given770-885LC at sight
Southeast AsiaPP Homo RaffiaOffer Received750-870LC at sight
Southeast AsiaPP Homo RaffiaOffer Received790TT
Southeast AsiaPP Homo RaffiaOffer Received*850LC at sight
Southeast AsiaPP Homo RaffiaPurchased750-820LC at sight
Southeast AsiaPP Homo RaffiaSold760-830LC at sight
Southeast AsiaPP Random Copolymer InjectionOffer Received980LC at sight
Southeast AsiaPP Random Copolymer InjectionPurchased980LC at sight
Far East AsiaPP Random LaminationOffer Received990LC at sight
Description: *May shipment offers

Transactions for local/localized PP in May on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery City
MalaysiaPP Homo InjectionOffer Received22,500,000877Haiphong
MalaysiaPP Homo InjectionPurchased22,500,000877Haiphong
Saudi ArabiaPP Homo InjectionOffer Given24,000,000-24,500,000936-956Ho Chi Minh
South KoreaPP Homo InjectionOffer Received28,300,000*1,104Ho Chi Minh
Saudi ArabiaPP Homo RaffiaOffer Given23,000,000-23,500,000897-917Ho Chi Minh
Saudi ArabiaPP Homo RaffiaOffer Received20,000,000780Ho Chi Minh
Saudi ArabiaPP Homo RaffiaPurchased20,000,000780Ho Chi Minh
ThailandPP Homo RaffiaOffer Given23,800,000928Ho Chi Minh
VietnamPP Homo RaffiaBuy Idea20,500,000-21,000,000800-819Haiphong
VietnamPP Homo RaffiaOffer Given23,500,000-24,300,000917-948Ho Chi Minh
VietnamPP Homo RaffiaOffer Received21,500,000-23,700,000839-924Haiphong
VietnamPP Homo RaffiaOffer Received21,500,000-24,000,000839-936Ho Chi Minh
VietnamPP Homo RaffiaPurchased20,000,000-22,000,000780-858Ho Chi Minh
South KoreaPP Random Copolymer InjectionOffer Received30,999,0001,209Ho Chi Minh
South KoreaPP Random Copolymer InjectionPurchased30,999,0001,209Ho Chi Minh
Description: *High-quality materials

Transactions for import PP in May on LC at sight, CIF/CFR Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerOffer Received860-890
Southeast AsiaPP Block CopolymerOffer Received890
Southeast AsiaPP Homo InjectionOffer Given885-900
Southeast AsiaPP Homo InjectionOffer Received860*-880*
ChinaPP Homo RaffiaOffer Received790-960
ChinaPP Homo RaffiaPurchased780
Far East AsiaPP Homo RaffiaOffer Received790-960**
Far East AsiaPP Homo RaffiaPurchased800-910**
Indian SubcontinentPP Homo RaffiaOffer Received820-860
Middle EastPP Homo RaffiaBid Received750
Middle EastPP Homo RaffiaOffer Given820-840
Middle EastPP Homo RaffiaOffer Received810-860
Middle EastPP Homo RaffiaPurchased830-860
Middle EastPP Homo RaffiaSold840
Southeast AsiaPP Homo RaffiaOffer Given885-930
Southeast AsiaPP Homo RaffiaOffer Received850-950
Southeast AsiaPP Homo RaffiaOffer Received860*-880*
Southeast AsiaPP Homo RaffiaSold870
Southern AfricaPP Homo RaffiaOffer Received790
South AmericaPP Homo RaffiaOffers Received780
Description: *Offers for June shipment **High MI (melting index)

Transactions for local/localized PP in June on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery City
SaudiPP Block CopolymerOffer Given28,500,0001,112Ho Chi Minh
MalaysiaPP Homo FilmSold26,600,0001,037Ho Chi Minh
South KoreaPP Homo FilmOffer Given26,600,000-27,000,0001,037-1,053Ho Chi Minh
ThailandPP Homo FilmSell Idea28,000,0001,029Ho Chi Minh
SaudiPP Homo InjectionOffer Received24,500,000955Ho Chi Minh
ThailandPP Homo InjectionOffer Received24,700,000-25,000,000963-975Ho Chi Minh
VietnamPP Homo InjectionOffer Received24,200,000944Ho Chi Minh
VietnamPP Homo InjectionPurchased24,200,000944Ho Chi Minh
IndiaPP Homo RaffiaOffer Received24,500,000-25,000,000955-975Haiphong
SaudiPP Homo RaffiaOffer Given25,500,000-25,800,000994-1,006Haiphong
SaudiPP Homo RaffiaOffer Given25,500,000-26,000,000994-1,014Ho Chi Minh
SaudiPP Homo RaffiaSell Idea26,500,0001,033Ho Chi Minh
South KoreaPP Homo RaffiaOffer Given25,000,000975Haiphong
South KoreaPP Homo RaffiaSold25,500,000994Haiphong
ThailandPP Homo RaffiaOffer Given24,800,000967Ho Chi Minh
ThailandPP Homo RaffiaOffer Received27,600,0001,076Ho Chi Minh
VietnamPP Homo RaffiaOffer Given24,800,000-26,000,000967-1,014Haiphong
VietnamPP Homo RaffiaOffer Received22,800,000-26,300,000889-1,026Haiphong
VietnamPP Homo RaffiaPurchased24,500,000955Haiphong
VietnamPP Homo RaffiaSell Idea23,700,000-26,500,000924-1,033Haiphong
VietnamPP Homo RaffiaOffer Given25,300,000987Ho Chi Minh
VietnamPP Homo RaffiaOffer Received23,100,000-26,300,000830-1,026Ho Chi Minh
VietnamPP Homo RaffiaPurchased24,200,000944Ho Chi Minh
SaudiPP Random Copolymer InjectionOffer Given32,000,0001,248Ho Chi Minh
South KoreaPP Random Copolymer InjectionOffer Received31,900,0001,244Ho Chi Minh

Transactions for import PP in June on LC at sight, CIF Vietnam Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerOffer Given980-1090
Middle EastPP Block CopolymerOffer Received820-1,020*
North AmericaPP Block CopolymerPurchased***1,190
Far East AsiaPP Homo FilmOffer Received*980
Indian SubcontinentPP Homo FilmOffer Received**945
Middle EastPP Homo FilmOffer Received980-1,030
Far East AsiaPP Homo InjectionOffer Received*940
Indian SubcontinentPP Homo InjectionOffer Given920-930
Middle EastPP Homo InjectionBuy Idea890-900
Middle EastPP Homo InjectionOffer Given900-930
Middle EastPP Homo InjectionOffer Received930-1030*
Middle EastPP Homo InjectionPurchased1,040
Middle EastPP Homo InjectionSell Idea990-1,000
Southeast AsiaPP Homo InjectionOffer Given950-1030
Southeast AsiaPP Homo InjectionSell Idea990-1,000
ChinaPP Homo RaffiaOffer Received900
Far East AsiaPP Homo RaffiaOffer Received940*-950
Indian SubcontinentPP Homo RaffiaOffer Given880-930
Indian SubcontinentPP Homo RaffiaOffer Received900-930
Middle EastPP Homo RaffiaBid Received870-920
Middle EastPP Homo RaffiaBuy Idea890-900
Middle EastPP Homo RaffiaOffer Given900-930
Middle EastPP Homo RaffiaOffer Received860-1,030*
Middle EastPP Homo RaffiaPurchased920
Middle EastPP Homo RaffiaSold870-930
Southeast AsiaPP Homo RaffiaOffer Given940*-1050
Southeast AsiaPP Homo RaffiaOffer Received920*-1,000
Southern AfricaPP Homo RaffiaBid Received920
Southern AfricaPP Homo RaffiaSold900
Middle EastPP Random Copolymer InjectionOffer Received*1,180
Description: *July shipment offers **August shipment offers ***High MI (melting index)

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

Published on July 7, 2020 3:05 PM (GMT+8)
Last Updated on July 7, 2020 3:05 PM (GMT+8)