Two more Saudi producers open August PP, PE offers to Vietnam

It is reported that another two major producers in Saudi Arabia have announced August shipment offers for PP and PE to Vietnam, mostly at higher levels compared to last month. 

The first producer appears to be more aggressive in the pricing decision citing the lack of inventories pressure. The maker’s price list and month on month changes are shown in the following table:

Despite having low sales pressure, a source close to the producer admitted that regional demand is not very strong and buyers might actively make comparison with other cargoes, especially those from the USA.

The source said, “We were expecting purchasing interest to pick up as the market enters the manufacturing season. However, we might wait for buyers to place bids before deciding on the next course of action.”

On the other hand, the second producer is more conservative in its new offers, though limited supply is also the main theme.  

Initial response from customers is rather positive toward the homo-PP cargoes, citing the fact that most other suppliers have already lifted prices to $1080/ton and above. “We quickly confirm some quantity as this offer is competitive. Allocation is not high,” a buyer added. 

In both cases, buyers are discussing the price gap between these cargoes with USA HDPE film and initial buy ideas are at below the $1000/ton threshold.