Saudi major announces July PE offers to Southeast Asia market

A major Saudi Arabia producer has announced fresh PE offers for July shipment to the Southeast Asia market with up to three digits reductions from last month. 

The producer’s latest price list and month-on-month changes are shown in the following table:

The drastic reduction is a result of plunging upstream ethylene costs and soft demand condition, sources said. Meanwhile, buyers are expressing buy ideas for both grades at $20-30/ton below the price list.

A source said, “Purchasing sentiment is picking up thanks to the support from the energy complex, however, prices might remain weak. We think it is possible for buyers to achieve deals at the range $920-930/ton for LLDPE film.”