Saudi maker introduce additional cuts on PE offers to Vietnam

After stepping back on March shipment offers by $20/ton on PE cargoes earlier this week, it is reported that a major Saudi Arabia producer has again cut prices by additional $20/ton by the final trading day of the week, bringing offers to $1240/ton for LLDPE film and $1410/ton for HDPE film, all based on CIF Vietnam, LC AS term.

Persistent sluggish demand condition is to blame for the price decision. The producer managed to sell off all available quantity of HDPE film while still struggling to attract demand for LLDPE film.

A local trader said, “We still find the adjusted prices not very competitive. Domestic demand is very weak and we have to cut offers to deplete inventory. Supply for LLDPE film is comfortable, which might drag market lower in the near term.”