Morning Briefing - 20 August 2026

From resistance to sell-out: Saudi PE finds Vietnam buyers

A major Saudi Arabian producer reportedly sold out its September PE allocation to Vietnam after scaling back an initially steep price hike, underscoring the presence of underlying demand once offers returned to more competitive levels.

The producer had initially raised September HDPE and LLDPE film offers by more than $200/ton from last month’s price list, but subsequently halved the targeted increase amid buyer resistance. The revision brought Saudi cargoes broadly on par with some US-origin parcels, prompting buyers to return despite their initial reluctance.

The sell-out suggests underlying demand remains intact in Vietnam, although purchasing behaviour continues to reflect heightened price and supply risks. Buyers remain cautious towards deep-sea cargoes and, where possible, favour nearby origins with shorter lead times to limit exposure to rapidly changing market conditions.

PVC prices jump, Malaysian buyers push back hard

Import PVC offers to Malaysia rose sharply as overseas suppliers rolled out fresh price lists with sizeable increases from the previous month, backed by higher upstream costs and easing inventory pressure following reduced operating rates. While the hikes were largely anticipated, buyers showed little willingness to accept the full increases.

Negotiations remained intense at the time of writing, with bids emerging $30–40/ton below suppliers’ initial offers. Buyers cited weak underlying demand and volatility across the energy complex as key reasons for resisting the increases, arguing that procurement at current levels carries considerable price risk.

No immediate deals were reported, leaving the market in a tug-of-war between suppliers seeking to pass through higher replacement costs and buyers pushing for discounts amid limited demand support.