Saudi major cuts HDPE blow price to Vietnam, firm on film despite stiff resistance

Have not been able to conclude September shipment allocations to Vietnam, a major Saudi Arabia producer decided to step back on HDPE blow moulding by additional $10/ton to $1280/ton. However, the maker is firm on film cargoes at $1300/ton claiming that demand in Indonesia is healthy for this grade and might consider diverting material to this market would Vietnamese buyers refuse to accept the price.

“We managed to sell out about 250 tons of HDPE blow moulding after the price adjustment and still having 500 tons on hand. On the other hand, demand for HDPE film is rather slack. Most buyers only place bids at $1280-1290/ton CIF term and real transactions have been disappointed so far,” a distributor said.

Another distributor added, “Our principal supplier has rejected all lower bid for film and planning to divert material to Indonesia market, where the acceptance level is much better.” 

In Indonesia, import HDPE film at $1300/ton for Middle Eastern origin was concluded smoothly in the previous week given the tight supply condition in the domestic ground. 

“But we are not sure if buyers would accept the same this week. The local currency is at the lowest level in decades against the US dollars and heavy concern on the new hike in import income tax (PPh) is dragging the sentiment,” a buyer commented. 

The Indonesian government announced the plan to lift import income tax for more than 1100 imported commodities by 2.5-7.5%. It is still unsure if plastic raw materials are included on the list; yet, buyers are adopting a more cautious stance until things become clear.