Saudi major announced new PE prices to Indonesia, Vietnam

According to market sources, a major Saudi Arabia producer has opened fresh PE offers for February delivery to Indonesia and Vietnam today. It is interesting that the new prices are rather diverged across the country.

In Indonesia, latest offers stand at $1200-1210/ton for LLDPE film, which is unchanged from last month while HDPE film offers gained $10/ton to reach $1160/ton, all based on CIF Indonesia, LC AS term. Respond from the market is not very positive as local ground continue to offers more competitive prices.

In Vietnam, the producer’s new offers are also different between the northern and southern area. While the maker implemented $20-30/ton hike on cargoes to northern market, to reach $1230-1240/ton for LLDPE film and $1180/ton for HDPE film CIF Hai Phong, LC AS term, prices to southern in contrast followed stable to softer trend. In fact, Ho Chi Minh based customers reported seeing $10/ton drop in the latest LLDPE film prices at $1200-1210/ton and HDPE film at $1150/ton, CIF Ho Chi Minh.

Despite the price differential, a common issue the producer informed regional buyers is the lack of cargoes availability. A Vietnamese customers informed, “We place bid for LLDPE film at $1180/ton and currently wait for the supplier’s feedback. Local market is very weak due to ample supply and sluggish demand condition, however are have skipped purchasing for two months, therefore, we must procure some cargoes this round.”