quarterlyssessments-q2-2020-vietnam-pp-prices

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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)

Origin	Product	Transaction Type	Offers (VND/ton)	Equivalent in USD/ton
South Korea	PP Homo Injection	Offer Given	22,000,000	858
Vietnam	PP Homo Raffia	Offer Given	23,000,000	897
Vietnam	PP Homo Raffia	Purchased	21,000,000	819

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

Origin	Product	Transaction Type	Offers (USD/ton)	Payment Term
Far East Asia	PP Block Copolymer	Price List	860-880	LC at sight
Southeast Asia	PP Homo Film	Offer Given	800-840	LC at sight
Southeast Asia	PP Homo Film	Offer Received*	880	LC at sight
Southeast Asia	PP Homo Film	Sold	800-840	LC at sight
China	PP Homo Injection	Offer Received	820	LC at sight
Far East Asia	PP Homo Injection	Offer Received	820	LC at sight
Middle East	PP Homo Injection	Bid Received	750-760	LC at sight
Middle East	PP Homo Injection	Offer Given	750	LC at sight
Middle East	PP Homo Injection	Sold	750	LC at sight
Southeast Asia	PP Homo Injection	Offer Given	855-865	LC at sight
Southeast Asia	PP Homo Injection	Offer Received	790	TT
Southeast Asia	PP Homo Injection	Offer Received	850	LC at sight
China	PP Homo Raffia	Offer Given	800	LC at sight
China	PP Homo Raffia	Offer Received	770-820	LC at sight
Far East Asia	PP Homo Raffia	Offer Received	800-830	LC at sight
Far East Asia	PP Homo Raffia	Price List	800	LC at sight
Indian Subcontinent	PP Homo Raffia	Offer Received	770-820	LC at sight
Middle East	PP Homo Raffia	Bid Given	730	LC at sight
Middle East	PP Homo Raffia	Bid Received	730	LC at sight
Middle East	PP Homo Raffia	Buy Idea	750	LC at sight
Middle East	PP Homo Raffia	Offer Given	750	LC at sight
Middle East	PP Homo Raffia	Offer Received	740-900	LC at sight
Middle East	PP Homo Raffia	Sell Idea	800	LC at sight
Middle East	PP Homo Raffia	Sold	730	LC at sight
Southeast Asia	PP Homo Raffia	Bid Given	720	LC at sight
Southeast Asia	PP Homo Raffia	Bid Received	750	LC at sight
Southeast Asia	PP Homo Raffia	Offer Given	770-885	LC at sight
Southeast Asia	PP Homo Raffia	Offer Received	750-870	LC at sight
Southeast Asia	PP Homo Raffia	Offer Received	790	TT
Southeast Asia	PP Homo Raffia	Offer Received*	850	LC at sight
Southeast Asia	PP Homo Raffia	Purchased	750-820	LC at sight
Southeast Asia	PP Homo Raffia	Sold	760-830	LC at sight
Southeast Asia	PP Random Copolymer Injection	Offer Received	980	LC at sight
Southeast Asia	PP Random Copolymer Injection	Purchased	980	LC at sight
Far East Asia	PP Random Lamination	Offer Received	990	LC 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)

Origin	Product	Transaction Type	Offers (VND/ton)	Equivalent in USD/ton	Delivery City
Malaysia	PP Homo Injection	Offer Received	22,500,000	877	Haiphong
Malaysia	PP Homo Injection	Purchased	22,500,000	877	Haiphong
Saudi Arabia	PP Homo Injection	Offer Given	24,000,000-24,500,000	936-956	Ho Chi Minh
South Korea	PP Homo Injection	Offer Received	28,300,000*	1,104	Ho Chi Minh
Saudi Arabia	PP Homo Raffia	Offer Given	23,000,000-23,500,000	897-917	Ho Chi Minh
Saudi Arabia	PP Homo Raffia	Offer Received	20,000,000	780	Ho Chi Minh
Saudi Arabia	PP Homo Raffia	Purchased	20,000,000	780	Ho Chi Minh
Thailand	PP Homo Raffia	Offer Given	23,800,000	928	Ho Chi Minh
Vietnam	PP Homo Raffia	Buy Idea	20,500,000-21,000,000	800-819	Haiphong
Vietnam	PP Homo Raffia	Offer Given	23,500,000-24,300,000	917-948	Ho Chi Minh
Vietnam	PP Homo Raffia	Offer Received	21,500,000-23,700,000	839-924	Haiphong
Vietnam	PP Homo Raffia	Offer Received	21,500,000-24,000,000	839-936	Ho Chi Minh
Vietnam	PP Homo Raffia	Purchased	20,000,000-22,000,000	780-858	Ho Chi Minh
South Korea	PP Random Copolymer Injection	Offer Received	30,999,000	1,209	Ho Chi Minh
South Korea	PP Random Copolymer Injection	Purchased	30,999,000	1,209	Ho Chi Minh

Description: *High-quality materials

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

Origin	Product	Transaction Type	Offers (USD/ton)
Far East Asia	PP Block Copolymer	Offer Received	860-890
Southeast Asia	PP Block Copolymer	Offer Received	890
Southeast Asia	PP Homo Injection	Offer Given	885-900
Southeast Asia	PP Homo Injection	Offer Received	860-880
China	PP Homo Raffia	Offer Received	790-960
China	PP Homo Raffia	Purchased	780
Far East Asia	PP Homo Raffia	Offer Received	790-960**
Far East Asia	PP Homo Raffia	Purchased	800-910**
Indian Subcontinent	PP Homo Raffia	Offer Received	820-860
Middle East	PP Homo Raffia	Bid Received	750
Middle East	PP Homo Raffia	Offer Given	820-840
Middle East	PP Homo Raffia	Offer Received	810-860
Middle East	PP Homo Raffia	Purchased	830-860
Middle East	PP Homo Raffia	Sold	840
Southeast Asia	PP Homo Raffia	Offer Given	885-930
Southeast Asia	PP Homo Raffia	Offer Received	850-950
Southeast Asia	PP Homo Raffia	Offer Received	860-880
Southeast Asia	PP Homo Raffia	Sold	870
Southern Africa	PP Homo Raffia	Offer Received	790
South America	PP Homo Raffia	Offers Received	780

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)

Origin	Product	Transaction Type	Offers (VND/ton)	Equivalent in USD/ton	Delivery City
Saudi	PP Block Copolymer	Offer Given	28,500,000	1,112	Ho Chi Minh
Malaysia	PP Homo Film	Sold	26,600,000	1,037	Ho Chi Minh
South Korea	PP Homo Film	Offer Given	26,600,000-27,000,000	1,037-1,053	Ho Chi Minh
Thailand	PP Homo Film	Sell Idea	28,000,000	1,029	Ho Chi Minh
Saudi	PP Homo Injection	Offer Received	24,500,000	955	Ho Chi Minh
Thailand	PP Homo Injection	Offer Received	24,700,000-25,000,000	963-975	Ho Chi Minh
Vietnam	PP Homo Injection	Offer Received	24,200,000	944	Ho Chi Minh
Vietnam	PP Homo Injection	Purchased	24,200,000	944	Ho Chi Minh
India	PP Homo Raffia	Offer Received	24,500,000-25,000,000	955-975	Haiphong
Saudi	PP Homo Raffia	Offer Given	25,500,000-25,800,000	994-1,006	Haiphong
Saudi	PP Homo Raffia	Offer Given	25,500,000-26,000,000	994-1,014	Ho Chi Minh
Saudi	PP Homo Raffia	Sell Idea	26,500,000	1,033	Ho Chi Minh
South Korea	PP Homo Raffia	Offer Given	25,000,000	975	Haiphong
South Korea	PP Homo Raffia	Sold	25,500,000	994	Haiphong
Thailand	PP Homo Raffia	Offer Given	24,800,000	967	Ho Chi Minh
Thailand	PP Homo Raffia	Offer Received	27,600,000	1,076	Ho Chi Minh
Vietnam	PP Homo Raffia	Offer Given	24,800,000-26,000,000	967-1,014	Haiphong
Vietnam	PP Homo Raffia	Offer Received	22,800,000-26,300,000	889-1,026	Haiphong
Vietnam	PP Homo Raffia	Purchased	24,500,000	955	Haiphong
Vietnam	PP Homo Raffia	Sell Idea	23,700,000-26,500,000	924-1,033	Haiphong
Vietnam	PP Homo Raffia	Offer Given	25,300,000	987	Ho Chi Minh
Vietnam	PP Homo Raffia	Offer Received	23,100,000-26,300,000	830-1,026	Ho Chi Minh
Vietnam	PP Homo Raffia	Purchased	24,200,000	944	Ho Chi Minh
Saudi	PP Random Copolymer Injection	Offer Given	32,000,000	1,248	Ho Chi Minh
South Korea	PP Random Copolymer Injection	Offer Received	31,900,000	1,244	Ho Chi Minh

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

Origin	Product	Transaction Type	Offers (USD/ton)
Far East Asia	PP Block Copolymer	Offer Given	980-1090
Middle East	PP Block Copolymer	Offer Received	820-1,020*
North America	PP Block Copolymer	Purchased***	1,190
Far East Asia	PP Homo Film	Offer Received*	980
Indian Subcontinent	PP Homo Film	Offer Received**	945
Middle East	PP Homo Film	Offer Received	980-1,030
Far East Asia	PP Homo Injection	Offer Received*	940
Indian Subcontinent	PP Homo Injection	Offer Given	920-930
Middle East	PP Homo Injection	Buy Idea	890-900
Middle East	PP Homo Injection	Offer Given	900-930
Middle East	PP Homo Injection	Offer Received	930-1030*
Middle East	PP Homo Injection	Purchased	1,040
Middle East	PP Homo Injection	Sell Idea	990-1,000
Southeast Asia	PP Homo Injection	Offer Given	950-1030
Southeast Asia	PP Homo Injection	Sell Idea	990-1,000
China	PP Homo Raffia	Offer Received	900
Far East Asia	PP Homo Raffia	Offer Received	940*-950
Indian Subcontinent	PP Homo Raffia	Offer Given	880-930
Indian Subcontinent	PP Homo Raffia	Offer Received	900-930
Middle East	PP Homo Raffia	Bid Received	870-920
Middle East	PP Homo Raffia	Buy Idea	890-900
Middle East	PP Homo Raffia	Offer Given	900-930
Middle East	PP Homo Raffia	Offer Received	860-1,030*
Middle East	PP Homo Raffia	Purchased	920
Middle East	PP Homo Raffia	Sold	870-930
Southeast Asia	PP Homo Raffia	Offer Given	940*-1050
Southeast Asia	PP Homo Raffia	Offer Received	920*-1,000
Southern Africa	PP Homo Raffia	Bid Received	920
Southern Africa	PP Homo Raffia	Sold	900
Middle East	PP Random Copolymer Injection	Offer 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)

QuarterlySSESSMENTS: Q2 2020 Vietnam PP Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q2 2020 Vietnam PP Prices

Author: SSESSMENTS

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