Saudi's PE concluded at smaller than hike target in Vietnam

Earlier this week, a major Saudi Arabia producer implemented $100/ton hike on HDPE film offers for March delivery to Vietnam reaching $1250/ton while LLDPE film saw $60-70/ton increased month on month basis at $1260-1270/ton, CIF Ho Chi Minh, Vietnam, LC AS term. However, deals are concluded at well below the offered prices.

In fact, players in the country reported to have purchased the cargoes at $1220/ton for LLDPE film and $1180/ton for HDPE film with the same payment term. A buyer source informed, “The supplier has only less than 50 per cent of regular allocation this month, and hence each regular customer only get one container of material. Despite such tightness, we think market has reached the peak and might hover around this range in the near term.” These cargoes only arrive in June, market participant added.