Vietnamese refinery operator Nghi Son Refinery and Petrochemical (NSRP) unexpectedly shut its 370,000 t/yr polypropylene (PP) plant in Thanh Hoa province around 7 October. The plant was shut because of minor technical issues, with it expected to restart by the end of this week, according to market sources.

The producer last shut its PP plant in August for a three-week planned maintenance.

PP prices in Vietnam held stable in the third quarter of this year when the country was under a strict lockdown to curb the spread of Covid-19, weakening demand among local converters as their labour-intensive operations were restricted. The start-up of South Korean producer Hyosung's second 300,000 t/yr PP unit in Ba Ria-Vung Tau province in Vietnam in mid-August further lengthened supplies in the domestic market, preventing any potential price gains.

But PP prices in Vietnam and other southeast Asian countries began to rebound in late September because of firm feedstock costs, recovering demand with easing Covid-19 restrictions and as the Asian arbitrage to export to the key Chinese market reopened gradually.

Vietnam has significantly eased restrictions in its biggest city Ho Chi Minh since early October, but some factory operators may face manpower shortages as the long-awaited lifting of curbs in the commercial hub has led to a mass exodus of workers to their hometowns.

Market participants expect the shutdown of NSRP's PP plant to tighten PP supplies in southeast Asia and keep Vietnamese domestic prices and regional PP prices firm.

Argus last assessed Vietnam's PP raffia prices at $1,240-1,260/t cfr Vietnam on 8 October.