Saudi producer lifted October PE offers to Indonesia, Vietnam

It is reported that a major Saudi Arabia producer has announced fresh PE offers for October shipment to Vietnam and Indonesia today with up to $100/ton hike from the previous month. Firming global market and strong ethylene costs are cited as the main support for such aggressive price decision.

The producer’s latest offers for both HDPE and LLDPE film are at $1240-1250/ton to Vietnam and at $1230-1240/ton to Indonesia, all based on CIF, LC AS term. Buyers in these markets are not very responsive toward the latest price levels.

A Vietnamese buyer commented, “We are not planning to accept such high prices since domestic offers are softening. We think the supplier might need to concede to at least $40/ton discount in order to attract sales.”

Demand for PE in Indonesia has been weakening, as converters are unable to pass on the increases in raw material costs. Many are seeking alternatives to protect profit margins and recycle seems to be the best next choice. “Many of our overseas customers are cutting down on end product orders at the current raw material prices and therefore we are not planning to make additional replenishment in the near term. Import offers above the $1200/ton threshold to Indonesia might face resistance.”