A Vietnamese converter applies distinct moves for PE and PP procurement activity, SSESSMENTS.COM noted. At the beginning of the week, a trader reported the offers for HDPE Film and LLDPE Film C4 from the leading Saudi polyolefins producer to Vietnam market were captured stable and $10/ton lower respectively from last week. From the converter’s end, the producer decided to offer HDPE Film at $20/ton lower from last week due to inquiries for a big volume of purchases. While for LLDPE Film C4, the offers are $30/ton lower compared to the same period. The converter revealed that done deals were concluded at the initial offer level as the volume of purchases only to cover production needs. For US HDPE Film cargoes, the offers are kept stable on a monthly comparison and there is no price comparison available for LLDPE Film C4 of the same origin. For US origin, done deals for HDPE Film and LLDPE Film C4 were also concluded at the initial offer level for a few hundred tons.
For PP Homo Raffia, the offers from a Thai producer have been adjusted higher by $10/ton from last week claiming that there is no sales pressure ahead of maintenance shutdown from the producer’s end. While for Saudi cargoes, although May shipment offers for PP Homo Raffia decreased between $80-90/ton compared to the initial offer level announced at the end of April, the offers still deemed unattractive. As such, SSESSMENTS.COM was told the converters skipped procurement activity for PP as the offers deemed too high.
“It seems foreign PE and PP suppliers are attempting to offer at higher prices claiming that they could sell the cargoes to China market at better prices. However, we prefer the wait-and-see stance at the moment due to the market uncertainties,” the converter stated to SSESSMENTS.COM. Pertaining to the demand, orders are still ongoing and the company’s production rate is still running at a normal rate around 90-95%.
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