Saudi LLDPE film for March shipment dealt with discounts in Vietnam

In Vietnam, players reported that a major Saudi Arabian producer conceded to giving some discounts in March LLDPE film deals after announcing initial offers with rollovers last week.

According to traders, the major producer sold March LLDPE film at $1010-1020/ton CIF Vietnam, cash this week. Their initial offers stood at $1080-1090/ton with the same terms. “Despite the ongoing tightness in supply and higher costs, LLDPE film has seen some discounts, as demand is sluggish, and buyers resist higher offer levels,” commented a trader.

“A major Saudi Arabian producer reduced their LLDPE offers this week, which created a concern over a downtrend among players. Converters are still in a wait-and-see mode since the end product demand remains lackluster. The producer hasn’t issued a discount for HDPE and LDPE film as the supply for these grades are tighter, and March prices are unchanged from the initially announced levels,” commented another trader also in Vietnam.

March deals for the Saudi major’s LDPE and HDPE film shipments were reported at $1140-1150/ton and $1060-1080/ton, respectively, on CIF, cash basis.

“Prices increased a lot after the holidays due to the tight supply from the Middle East. However, the market has slowed down again this week. We heard that a major Saudi producer issued $20-30/ton discounts in done deals for LLDPE. Accordingly, some players have opted to stay sidelined and haven’t made purchases in the current week. “We feel like it will be hard to push prices further despite the cost support from escalating crude oil and monomer prices,” said another trader.