Buyer Resistance Fuels Fresh Cuts in Turkey's PP and PE Markets

Turkey's import PP and PE markets remained under strong downward pressure this week as weak demand, ample supply, and aggressive pricing from overseas suppliers continued to push offers lower. Buyers largely postponed purchases, expecting further corrections, while sellers faced increasing pressure to reduce prices in order to secure business.

The sharp decline follows the easing of geopolitical tensions and the normalization of crude oil prices, which have removed much of the cost support seen earlier this year. As a result, the war-driven premium in polyolefin markets has continued to unwind, although prices are still trading above pre-conflict levels.

Polyolefin Market Snapshot

Saudi PP Raffia

Correction (Last 2 Months): ▼ $410/ton (-25%)
Vs. Pre-War Level: ▲ $330/ton (+35%)

US LLDPE C4 Film

Correction (Last 2 Months): ▼ $700/ton (-39%)
Vs. Pre-War Level: ▲ $185/ton (+20%)

US HDPE Film

Correction (Last 2 Months): ▼ $720/ton (-39%)
Vs. Pre-War Level: ▲ $200/ton (+21%)

South Korean suppliers have become increasingly competitive in the PP market, offering material at significantly lower prices than in previous weeks. These aggressive offers have intensified competition with Middle Eastern suppliers and strengthened buyers' bargaining power. Although some buyers have submitted even lower bids, many remain cautious about booking long-transit cargoes and continue purchasing only for immediate needs.

The PE market has witnessed a similar trend, with US-origin LLDPE and HDPE film offers falling sharply. Market participants believe US suppliers are actively clearing inventories before the quarter-end, leading to more competitive export pricing. Growing availability from multiple regions has further increased pressure on sellers.

Despite the recent correction, many buyers believe prices have not yet reached the bottom. They argue that lower feedstock costs, sufficient global supply, and sluggish demand across key regions leave room for additional declines. Weak economic conditions and tight liquidity in Turkey have also encouraged converters to maintain a hand-to-mouth buying strategy instead of rebuilding inventories.

Looking ahead, market sentiment is expected to remain bearish unless demand shows a meaningful recovery. With buyers continuing to target lower prices and global supply remaining comfortable, both PP and PE markets are likely to face further pressure in the coming weeks.

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