Saudi Arabia producer announced September PE offers to Southeast Asia

It is reported that a major Saudi Arabia producer has opened fresh PE offers for September shipment to Southeast Asia at softer levels compared to the previous month. Apparently, the LLDPE film witnesses a larger drop than the HDPE film, which deemed as a result of more comfortable availability.

The maker’s latest price list and month-on-month changes are shown in the following table:  

The initial response from Indonesian buyers is rather sluggish due to the fact that domestic cargoes remain more competitive while end product businesses have yet to see recovery from the raging COVID-19 outbreak here. In contrary, several PE bags makers that serve the domestic demand are suffering from a least 40% drop in end product orders month-on-month, resulted in reduced interest in making replenishment for raw materials.

Meanwhile, Vietnamese buyers are placing bids for LLDPE film at well below the $850/ton threshold, citing the lack of purchasing interest and the presence of other cargoes at more competitive levels.