Saudi maker sold out most PP, PE allocation to Vietnam at stable to softer levels

A major Saudi Arabia producer reportedly sold out most of the PP and PE allocation for August shipment to Vietnam after conceding to $10-20/ton discount on certain grades. In a surprising development, Vietnamese buyers show greater acceptance for the cargoes after the initial reluctance.

The concluded prices and changes from the offer levels are shown in the following table:

“We are requesting for additional LLDPE film Mi-2 quantity as some of our customers are still having inquiries. Demand turns out to be better than expected,” a distributor said.

One of the reasons buyers become more active is that Saudi’s Eastern Petrochemical Company (SHARQ) reportedly encountered a serious technical issue, forcing the company to shut down the production for LLDPE Mi-2. No export allocation for this grade in August while all cargoes purchased in the previous month have been delayed indefinitely. 

“We have to look for alternative materials to replace the missing quantity,” a converter said. The source is also talking to Thailand maker to purchase additional cargoes.