Saudi producers reveal March PE, PP offers to Vietnam

Vietnamese PP and PE players have started to receive offers for March from Saudi Arabian producers this week mostly with rollovers to slight increases from last month. Although the rally in Southeast Asia polyolefin markets has faltered recently in the face of weaker-than-expected post-holiday trend in neighboring China and subdued regional demand, Saudi producers’ firm stance has been mostly attributed to tightness amid a spate of shutdowns across the Middle East.

A trader reported that March PE offers they received from a major Saudi producer were standing at $1190/ton for LDPE film, $1120/ton for LLDPE, and $1090/ton for HDPE film, all on CIF Vietnam, cash basis. When compared to the major producer’s price levels last month, the producer’s March offers were flat for LDPE film while up by $10/ton for HDPE film and $20-30/ton for LLDPE film.

“New offer levels for PE have remained high for March. Supply from the Middle East is still tight,” he commented.

Another trader also reported that a different Saudi producer’s HDPE film offers to Vietnam for March were up by $10/ton from last month to stand at $1100/ton CIF, cash. The producer’s homo-PP raffia offers were also standing at $1110/ton on similar terms.

“Demand for HDPE is still regular, but it is sluggish for PP as offers for the product are deemed too high,” he noted.