Polypropylene (PP) prices in Vietnam have remained stable even as tensions with China escalated following a boat-sinking incident at contested waters, traders said on 27 May.
Vietnamese officials have accused Chinese vessels for ramming a Vietnamese fishing boat, which sank in the South China Sea on 26 May, according to media reports. “There has been no impact on the [PP] market so far,” a Vietnam-based trader said.
Dutiable Saudi-origin flat yarn and injection grades in 100-200 tonnes for first-half June arrival changed hands this week at $1,550/tonne CFR (cost and freight) Vietnam, sources said.
Separate dutiable Saudi-origin flat yarn and injection cargoes were offered at $1,560/tonne CFR Vietnam. Similar-priced deals and discussion levels were noted the previous week.
The boat-sinking incident on 26 May followed the anti-China violence in mid-May that saw foreign-owned factories in the southern provinces of Vietnam set on fire.
The riots erupted after China placed an oil rig near Paracel Islands, which is also being claimed by Vietnam.
PP market players are cautious about possible changes in the dynamics following recent development that appears to heighten anti-China sentiment in Vietnam.
Vietnam is an importer of PP from China, traders said. “We are not trading China-origin cargoes in the short term. Perhaps there could be more checks at the customs. The recent buying interest for these cargoes have been low, anyway,” said a separate Vietnam-based trader.