Saudi maker step back on April PE cargoes to attract deals

A major Saudi Arabia producer earlier this week announced April shipment offers to Vietnam at $1090/ton for HDPE film and $1050/ton for LLDPE film, all based on CIF Vietnam, LC AS. Market response was not very active at the initial price list; however, transactions start to pick up after the producer conceded to some cuts. 

The final prices have been announced at a reduction of $30/ton for HDPE film to $1060/ton and $10/ton for LLDPE film to $1040/ton with the same term.

“The producer’s HDPE film price is rather competitive at the moment compared to other Middle Eastern cargoes. Despite the limited supply, the $30/ton cut is considered large, which might encourage buyers to aggressively negotiate with other suppliers for similar discount,” a market source commented.