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It is reported that a major Saudi Arabia producer has announced December shipment offers for PE cargoes to the Southeast Asia market with a rather large reduction compared to the previous month.

The latest price list to respective markets and month-on-month changes are shown in the following table:

Apparently, the producer is recovering from the production disruption following the drone attacks that targeted Aramco’s oil refining facilities. Earlier this month, the producer has also offered some spot cargoes to the Vietnam market. 

Regional buyers have expressed the buy ideas for these cargoes at around $800/ton for both HDPE and LLDPE film, citing the far shipment date and extremely high price risk. A Vietnamese buyer added, “At the moment, offers for USA PE cargoes are softening while Saudi suppliers are still holding firm on prices. We are not planning to proceed with the purchases would the supplier reject our bids.” 

Meanwhile, in Indonesia, the local LLDPE film market is now around the same par with the import offers from the Saudi maker, making very challenging to attract buyers here. “But ethylene costs are very high at the moment and we are not able to march to below the $800/ton threshold at the moment,” a distributor commented.   

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Indonesia  Vietnam