Saudi PE Producer Lowers September Offers to Vietnam

A leading Saudi Arabian PE producer has announced lower September shipment offers to Vietnam, according to traders, reversing the broad price increases seen in August. The producer reduced prices across all grades where a direct month-on-month comparison was available, while new offers were introduced for some grades that had no August reference.

For September shipments, HDPE film offers were reduced by $40/ton, LLDPE C4 film by $20/ton, LDPE film and LDPE coating by $50/ton each, mLLDPE C6 by $100/ton, and LLDPE C4 injection by $50/ton from August levels. HDPE blow molding and HDPE injection were newly offered, so no August comparison was available.

The latest offers were set at $1310/ton for HDPE film, $1230-1240/ton for LLDPE C4 film, $1450-1460/ton for LDPE film, $1500/ton for LDPE coating, $1300/ton for mLLDPE C6, and $1350/ton for LLDPE C4 injection. HDPE blow molding was offered at $1310/ton, while HDPE injection was quoted at $1400/ton. All prices were on a CIF Vietnam, cash basis.

Lower Offers Despite Firm Upstream Costs

The September reductions come despite continued strength in upstream costs and relatively tight regional PE supply. Southeast Asian PE markets have remained on an upward trend since mid-July, supported by elevated crude and ethylene costs alongside reduced availability.

However, stronger feedstock costs have not translated fully into resin prices as buyers continue to resist higher offers. This has limited sellers’ ability to pass through rising production costs.

Demand Remains a Key Challenge

The Saudi producer’s latest move could indicate a more cautious pricing approach as downstream demand places a ceiling on PE prices. Although the traditional high-demand season is approaching, buyers across the region continue to purchase mainly on a hand-to-mouth basis.

High resin prices and limited scope to pass increased costs through to finished products are keeping purchasing interest subdued. The September reductions therefore highlight the pressure sellers face in balancing firm costs with cautious downstream demand.

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