Major Middle Eastern producer lifted PE prices to Vietnam, Malaysia

According to buyers in Vietnam and Malaysia, a major Saudi Arabia producer has announced new HDPE and LLDPE film offers with $30-40/ton increased compared to last week, claiming lack of sales pressure. 

A Vietnamese buyer reported to have received offers at $1140/ton for HDPE film and $1220/ton for LLDPE film, CIF Vietnam, LC AS term informed, “We have replenished sufficiently in the previous week at lower levels, hence not in rush to make additional purchases. We managed to conclude a good number of deals in the domestic market, yet unable to increase our offers. Market might continue to remain on the firm track in the near term and we hope this would support domestic ground.”

In Malaysia, a food-packaging converter also received a hike of $30/ton on both HDPE and LLDPE film cargoes from the producer with a source said, “Our end product business has picked up significantly, and orders from Africa, India and Bangladesh are coming. On the other hand, we have sufficient material for our production, hence not interested in such high prices.” 

Despite the initial reluctance amongst buyers, many market participants commented that this move could elevate the general sentiment in the near term and that buyers would accept the new levels eventually.