Another Saudi producer slashed June PP, PE offers to SEA, China

Another Saudi Arabia producer has opened June shipment offers for both PP and PE to Southeast Asia and China with large reductions compared to May, in line with the weakening trend across the region.

The producer’s latest offers to Southeast Asia fell to $1130-1140/ton for both HDPE and LLDPE film, while LDPE lamination plunged $290/ton to $1520/ton. There is no PP block copolymer available, however, homo-PP cargoes are at $1240/ton, all based on CIF Southeast Asia term.

In China, offers stand at $1050/ton for HDPE film, down $20/ton from the previous week, at $1060/ton for LLDPE film, down $10/ton. However, the producer lifted homo-PP prices by $40/ton to $1140/ton, all based on the CFR China term.

Vietnamese buyers have laced bids for HDPE and LLDPE film in the range of $1080-1100/ton CIF Vietnam, claiming the lackluster sentiment in this market due to the new wave of COVID-19 outbreak. 

“We are waiting for the supplier to feedback. Other sellers have already set the prices at $1100/ton for both HDPE and LLDPE film, therefore, we do not expect the producer to breach below the threshold,” a buyer reported.  

In terms of the homo-PP market, Chinese buyers are looking at prices below the $1100/ton mark, resulting in stiff resistance towards the latest increases. In fact, at the time of this report, a number of deals for Middle Eastern homo-PP yarn have been reached in the range of $1080-1100/ton CFR China, further encourage buyers to insist on the bid levels.