Two Saudi majors announced December PP, PE to Southeast Asia

Two Saudi Arabia producers have pioneered the December shipment offers to Southeast Asia on the final trading day of the week. Comparing the price lists, there are several differences, however both makers do reflect the HDPE supply tightness into higher price level for this grade from last month.

Price lists based on CIF Southeast Asia, LC AS term and month on month changes are shown in the following table:

A source close to the first producer informed to have concluded deals for HDPE film at $1280/ton to Vietnam, based on CIF, LC AS term, and therefore have no plan for further negotiation on this cargoes. “Chinese buyers are willing to take HDPE film at $1300/ton CFR term, which give us a better alternative destination if Southeast Asian customers resist the prices. At the meantime, outlook for LLDPE film is a little bearish. More discussion might emerge in the coming week,” the source added.

Initial respond toward the second producer’s price list is not very positive with buyers complained mostly of the large jump in HDPE film offers. “At the meantime, the PP block market is rather quiet, Buyers are asking for large discount and we have not made any decision,” an international distributor said.