LATEST NEWS: Saudi PE offers to Vietnam slip further for June after steep May declines

Saudi Arabian producers have announced their June PE offers to Vietnam, mostly continuing their downward trend following last month’s sharp cuts of up to $90/ton, traders reported.

A major Saudi producer cut June prices by $10/ton compared to May for HDPE film, HDPE blow molding, LDPE film, and LLDPE film. The producer lowered the low-end HDPE injection price range also by $10/ton but implemented a $10/ton increase on the high end of the grade.

Accordingly, the major’s new prices were set at $960/ton for HDPE film, $940/ton for HDPE blow molding, $910-960/ton for HDPE inj., $980-990/ton for LLDPE film, and at $1140/ton for LDPE film, all on a CIF Vietnam, cash basis. The major producer also revealed mLLDPE C6 offers for June at $1120/ton with the same terms. LDPE coating and injection grades were not included in the new offer list for another month.

Traders noted that offers were open to negotiations, with bids heard at $960/ton for LLDPE, $1120/ton for LDPE, $930/ton for HDPE film, and $890–930/ton for HDPE blow molding and injection.

Another Saudi Arabian producer also revealed their June-shipment PE offers to the country. New HDPE film offers marginally declined by $20/ton from a month earlier to stand at $890/ton, while LLDPE film prices remained unchanged at $950-960/ton, both on a CIF Vietnam, cash basis. This marked the second consecutive month of the downtrend in the producer’s monthly price list as they saw sharp drops of $70-90/ton for May shipments.

A source from the producer noted, “Buyers haven’t accepted the new price levels yet, as they still expect additional drops. However, prices are unlikely to decline further due to firm production costs and rising prices in China.”