Vietnam PP importers seek cargoes for end-2016 arrival

14 September 2016 11:55 Source:ICIS News

SINGAPORE (ICIS)--Vietnamese polypropylene (PP) traders and converters were seeking end-2016 cargoes, which will still enjoy the prevailing 1% import duty, market sources said on Wednesday.

Vietnam’s import duty on PP will be increased to 3% effective on 1 January 2017.

An international trader sold Middle East PP flat yarn and injection cargoes for loading in early November at $1,010/tonne (cost and freight) Vietnam, to several local traders and converters.

These buyers attempted to secure cargoes of their preferred origin to arrive by end-November at the earliest, according to the seller.

Transactions were, however, limited as most market players were awaiting further price direction from China.

Few spot cargoes at the low-$1,000/tonne CFR Vietnam levels were available for discussion, while buying ideas were mostly capped at $1,000/tonne.

Some market players were hoping for more cargoes of Middle East and other origins to be diverted to Vietnam , when Chinese players are done with their buying activities before early October.

The Chinese markets will be on holiday on 1-7 October for its National Day celebration.

By Johanna Truong