As informed to SSESSMENTS.COM, following the uptrend in crude oil and feedstock prices, the leading Saudi polyolefins producer adjusted import PE offers up to three-digit to Asia market. Compared to last week, offers for import HDPE Film and LLDPE Film C4 from the producer to the Vietnam market increased by $70/ton and $80/ton, respectively. While offers for LDPE Film moved up by $100/ton. A local converter and trader did not purchase LLDPE Film C4 cargoes as the offers are considered unattractive and only purchased a small volume of HDPE Film and LDPE Film at the same level to the initial offers at $840-860/ton and $960/ton, respectively, on LC at sight, CIF Vietnam Main Port basis. In Vietnam’s domestic market, some traders are offering localized Saudi HDPE Film cargoes at VND200,000-700,000/ton ($8-30/ton) higher compared to last week.
Likewise, a local converter in the Philippines stated that the company received offers for LLDPE Film C4 from the leading Saudi polyolefins producer at $40/ton higher compared to May shipment. However, considering 3% customs duty, the offers are deemed unworkable. While to the China market, SSESSMENTS.COM noted that the producer moved up LDPE Film and LLDPE Film C4 offers by $10/ton on a weekly comparison and maintained stable offers for HDPE Film cargoes compared to the same period.
On the demand front, improvement was recorded in the Vietnam market. A Vietnamese trader stated that the company managed to sell PE allocation by two or three times more compared to when the country was under social restrictions. However, PE demand in the Philippines is yet to be back to normal citing that the market remains slow amid the lockdown. Moreover, most factories in the Philippines are still running below 50% of normal production. Taking the demand condition into account, market players shared concern on whether the offers from the leading Saudi polyolefins producer will remain firm in the near term. However, the producer may maintain firm offers if the crude oil prices continue to trend higher, as stated to SSESSMENTS.COM.
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