Saudi Producer Sells Out September PE Allocations to Vietnam Following Price Reduction
A Saudi producer sold its entire September polyethylene allocation to Vietnam after halving its price hike, drawing buyers back and resulting in a complete sell-out.
A major Saudi producer sold out its entire September polyethylene allocation to Vietnam after retreating from a sharp price hike it had initially announced.
The producer had raised September offers for film-grade HDPE and LLDPE by more than $200/ton compared to last month's price list, but halved this increase in the face of buyer resistance.
The price adjustment brought Saudi origins back close to US-origin counterparts, encouraging buyers to return and leading to a complete sell-out.
The strong demand for these allocations indicates that underlying demand in Vietnam remains resilient, although buyers tend to prefer nearby cargoes to minimize delivery risks; giving regional producers a competitive edge over distant suppliers in this market.
What Do These Terms Mean?
HDPE: High-density polyethylene — a rigid plastic used in making industrial bags, pipes, and detergent bottles.
Film-grade LLDPE: Linear low-density polyethylene intended for film — a flexible material used in manufacturing thin plastic packaging like packing bags.
Deep-sea shipments: Cargoes arriving from distant ports that take longer, increasing financing costs and price volatility risks during transit time.
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