Two Saudi majors lifted PE offers to Vietnam, buyers demand large discount

Two major Saudi Arabia producers pioneered January shipment offers to Vietnam with $10/ton increased from last month for all PE cargoes with strong upstream costs and limited supply are the main supports. Buying interest is weak and buyers are taking time to evaluate the medium term outlook before making decision.

The first producer’s price list stand at $1190-1200/ton for LLDPE film and $1290/ton for HDPE film, all based on CIF Vietnam, LC AS term. Players are comparing the latest offers with done-deals levels for the previous month, from which many are planning to ask for $30-40/ton discount from price list. “Availability of Indian LLDPE film at competitive levels is limiting other producers’ ability in firming up prices. We will only accept deals at previous month’s range,” a buyer said.

The second producer lifted offers to $1190/ton for LLDPE film and $1290/ton for HDPE film with the same shipping term. Beside, homo-PP offers from the maker remained unchanged at $1180/ton CIF Vietnam, LC AS term. “Demand for HDPE film is not as strong as it was in late November. We do not expect buyer to accept latest offers,” a source said.

In fact, domestic traders started to concentrate on depleting inventories for both LLDPE and HDPE film, causing dull sentiment in local ground this week though prices have yet to witness major changes. Buyers in the country become less optimistic about the medium term outlook, fearing that market would turn south in the post Lunar New Year period.