Saudi PE cargoes concluded with large discount in Vietnam

A major Saudi Arabia producer announced April shipment offers for PE to Vietnam earlier this week with $40/ton reduction compared to last month have concluded deals with large discounts. Deals reported in the country at an additional cut of $40/ton on LLDPE film at $1190/ton and $60/ton on HDPE film at $1350/ton, all based on CIF Vietnam, LC AS term.

This is the first time import LLDPE film to Vietnam from mainstream origin traded below the $1200/ton threshold in ten weeks, yet buyers are very conservative about purchases. A buyer said, “Market is correcting regardless of stronger upstream ethylene and energy markets. The price risk is very high, and as a result, we only purchase minimum quantity this time.”

“Market is so quiet and even with a total reduction of $80-100/ton compared to last month, we are facing difficulties to smoothen sales process,” a distributor source informed.

Vietnamese buyers are expecting other suppliers to follow the move and as a result, many rather wait for further reductions to emerge.