Saudi Arabia producers concluded PE in Vietnam with minor to no discounts

Vietnam market has been pretty quiet since players returned from the long Lunar New Year holiday even with the surge in ethylene costs. However, it appears that players are more willing to place orders these two days given the persistent firm stance from the sellers.

Transactions for Saudi Arabia HDPE film observed at $1080-1100/ton depending on quantity while LLDPE film ranging $1020-1040/ton, all based on CIF Vietnam, LC AS.

It is informed that supply for HDPE film from a Saud producer is so tight that the supplier refuses to offer any discount from the initial price list, to close deals at $1080/ton. The maker did agree to $20/ton reduction on LLDPE film.

“Even availability for LLDPE film is very limited. We are unable to secure the normal allocation,” a local trader reported.

It is important to note that despite smoother sales from the producer side, most cargoes takers at the moment are local traders, while converters remain less active. On the bright side, this signals that the market is gradually accepting higher prices, especially for HDPE film, which has been facing tremendous resistance over the past week.

“For buyer purchase less than 100 tons, we insist on the price $1100/ton for HDPE film. We hope to move more cargoes in the coming days,” another Saudi Arabia producer added.

Ethylene costs in Asia hit the highest levels since the beginning of October 2018 at $1080/ton CFR Southeast Asia and $1200/ton CFR Northeast Asia on 20 February. The current ethylene costs are uneconomical to most non-integrated PE producers.