Vietnam's polypropylene (PP) supplies are expected to remain tight in March because of reduced domestic production and tightening import availability. Vietnam's Nghi Son Refinery and Petrochemical (NSRP) encountered an electrical supply issue in mid-February, which led to the shutdown of its 200 kbpd refinery. The producer shut its downstream 370 kta PP unit around the same time, which receives feedstock from the refinery. The PP unit was shut for around two weeks, tightening domestic PP supplies, before resuming operations at the end of February or early March. South Korea's Hyosung, the newest PP producer in Vietnam, is running its 300 kta PP plant at reduced rates of around 70-80% because of feedstock shortages since early March. The PP plant started up in 1Q20 as part of the project's first phase and is operating using outsourced propylene. The second phase of the project includes the addition of a 600 kta propane dehydrogenation plant and another 300 kta PP unit, which are expected to come on line late in 3Q21. In southeast Asia, Thailand's IRPC that is a key exporter of PP to Vietnam is also operating its PP complex at reduced rates similarly because of feedstock propylene shortages. The complex can produce up to 775 kta of PP. The Rayong-based petrochemical producer is cutting its PP exports while prioritizing domestic demand and focusing on clearing a backlog of orders, but it is unclear if IRPC is reducing PP offers to Vietnamese buyers. Middle East producers have also kept PP offers high or reduced exports to Vietnam since January because of firm demand and higher sales netbacks in other markets. The trend is expected to continue in the short term because of huge production losses in the Americas, which have further tightened global PP supplies. A recent rise in global PP prices could encourage Vietnamese producers to resume PP exports beyond Asia-Pacific, which were reduced earlier this year as high freight costs limited long-haul trades. China can export PP to Vietnam with zero import tariffs because of the Asean-China free trade agreement. Vietnam has been the largest importer of Chinese PP over the past five years, taking an average of 140 kta or 35% of China's total PP exports during 2019-2020.