Saudi major concluded PE cargoes to Vietnam without discount

Despite majority of Vietnamese players are still on holiday, a major Saudi Arabia producer claimed to have sold out their available PE cargoes to the country this week with no discount from initial offers, reaching $1200/ton for LLDPE film and $1170/ton for HDPE film, all based on CIF Vietnam, LC AS term.

A distributor source commented, “We have very small quantity this time due to persistent plant issues and our regular buyers have accepted the hike for that reason.” It is also reported that the producer’s plants are still under shutdown owing to unspecified technical glitches and might only come back online by mid of February. The source added, “Therefore, cargoes availably this month will be very limited.”

In addition, the producer also reportedly sold out homo-PP cargoes at only $10/ton discount from initial prices, at $1070/ton with the same term. A buyer purchased the cargoes informed, “We have placed our orders at the reported prices, yet there is no confirmation on the quantity available at the moment. Looking ahead, putting the political aside, we think the current supply demand equilibrium is set to pull prices higher.”