Saudi Producer’s PE Deals in Vietnam Concluded Below Initial June Offers

Fresh deal indications for June-shipment polyethylene (PE) cargoes from a major Saudi Arabian producer have emerged in Vietnam, showing that actual transaction levels are noticeably lower than the producer’s opening offers announced last week.

The supplier had recently returned to the Vietnamese market after a two-month absence caused by shipping disruptions and production-related challenges linked to regional geopolitical tensions. Initial June offers were reported at relatively firm levels across PE grades, including HDPE film, LLDPE film, and LDPE film.

However, market feedback this week suggests buyers were able to secure cargoes at significantly discounted levels. LDPE film transactions were reported near $1540/ton CIF Vietnam, while HDPE film deals were concluded in the range of $1290-1320/ton CIF. LLDPE film cargoes were reportedly traded around $1170/ton CIF, all on a cash basis.

Market participants said the availability of Saudi-origin material has increased competition, placing pressure on sellers to adjust pricing. Buyers noted that Saudi cargoes are being offered at more competitive levels compared to prompt shipments available in the market.

Demand conditions in Vietnam remain weak, with many buyers continuing to adopt a cautious purchasing strategy. Most converters are limiting purchases to immediate requirements while monitoring market developments and waiting for clearer price direction.

Traders also reported that the overall market sentiment remains bearish. Despite additional discounts being offered by suppliers to stimulate sales, buying interest has remained limited as many market participants expect PE prices to soften further in the coming weeks.

The latest transactions indicate that downward pressure continues to dominate Vietnam’s PE market, with sellers increasingly adjusting offers to secure business amid sluggish demand and cautious buyer sentiment.

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