Another Saudi maker slashed April PP, PE offers to Vietnam

Another major Saudi Arabia producer has announced April shipment offers for PP and PE to Vietnam with a large reduction from the previous month. This is a result of the constantly weakening trend since after the long Lunar New Year holidays.

The latest price list and changes are shown in the following table:

In spite of the large cuts, the market remains pretty still and buyers have been expressing expectation for additional reductions before concluding deals. “These offers are way above acceptance levels. We plan to place bids at $50/ton lower,” a buyer commented.

On the other end, the producer has just restarted both of the LLDPE lines with a combined capacity of 600,000 tons/year from maintenance shutdown and achieving regular run rate. “Demand in Southeast Asia is weak. However, we do believe the current downtrend is more of a correction and market might be rebound soon given a number of shutdown taking place in April,” a source close to the producer said.