Saudi Producer Finalizes November PE Deals in Vietnam at High Prices

A leading Saudi Arabian polyethylene (PE) producer has finalized its November sales to Vietnam at prices below its initial offers, but buyers continue to consider the concluded levels expensive. Elevated Middle Eastern prices, supply uncertainties and escalating regional conflict have supported sellers’ positions. Meanwhile, weak demand for finished products is prompting Vietnamese buyers to seek cheaper US-origin material and off-grade alternatives.

November PE Deals Close Below Opening Offers

Traders reported that the Saudi producer concluded November transactions at $1,420–1,440/ton for LLDPE film, $1,400/ton for HDPE film and $1,620/ton for LDPE film, on a CIF Vietnam, cash basis.

Compared with its initial November quotations announced the previous week, the finalized prices reflected reductions of $10–40/ton for LLDPE film, $50/ton for HDPE film and $30/ton for LDPE film.

The adjustments were broadly consistent with the producer’s usual practice of negotiating below its opening offers. Rather than indicating a significant change in market sentiment, the discounts helped conclude business while prices remained elevated.

Vietnamese buyers continued to express concern over the high cost of resin. One trader said the Saudi producer’s finalized levels were still expensive and added that the ongoing Middle East conflict had raised concerns about further increases. Given the prevailing prices, the trader said purchases would remain limited to immediate requirements.

Saudi Offers Remain Competitive Against Chinese Material

Despite the high absolute price levels, the Saudi producer’s concluded HDPE and LLDPE film prices remained competitive against certain alternative origins, particularly China.

Chinese offers for both grades were reported above the Saudi producer’s finalized levels. The development highlights how rising feedstock and production costs have weakened China’s price competitiveness in regional export markets.

LDPE film remained particularly expensive, with the Saudi producer’s concluded price of $1,620/ton positioned at the upper end of Vietnam’s prevailing import market.

Lower-Priced US Cargoes Gain Buyers’ Attention

With offers for HDPE and LLDPE film from most origins hovering around or above $1,400/ton CIF Vietnam, US-origin material has attracted interest from buyers looking to reduce procurement costs.

US PE cargoes were reportedly available at around $1,300/ton or even lower, offering a substantial discount compared with other origins. This price advantage has encouraged buying interest despite the longer delivery times associated with shipments from the US.

Vietnamese converters are also turning to off-grade material to manage costs amid weak demand for finished products. One converter explained that high prices and a sluggish economy were hurting sales, making imported PE at prevailing levels difficult to accept. The converter said some purchases had shifted to off-grade material, priced $100–150/ton lower, or to US-origin cargoes.

Vietnam’s November PE market therefore remains caught between elevated import costs and fragile downstream demand. Although the Saudi producer has granted discounts to close deals, buyers continue to prioritize affordability and immediate needs, with cheaper US cargoes and off-grade material providing alternatives.

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