Another Saudi major announced January PP, PE offers to Vietnam

Another Saudi Arabia producer has reportedly cut PP and PE offers for January shipment to Vietnam by $40-70/ton from last month, and yet customers here are not responding very positively to the latest price list.

The producer’s offers and month on month changes are shown in the following table: 

It is important to note that one of the PP lines at the producer’s plant in Jubail, Saudi Arabia is still off-line due to the mechanical issues since October and might only come back online in January. Therefore, no homo-PP yarn and BOPP cargoes are available (for spot market).

“In the meantime, we think it is difficult to attract buying interest for homo-PP injection at $1100/ton. Other makers have concluded deals at $1070/ton earlier this week for yarn grade, and hence, we think it might be more appropriate of injection grade is at around $1060/ton level,” a PP buyer added.

PE buyers are sharing a similar opinion, planning to place bids at $20-30/ton lower than the price list. The market has two days to place bids before the producers announce the final prices.