Cost support returns to Turkey's polymer markets, reviving buying interest

Turkey’s polymer markets are showing early signs of stabilization after several months of continuous price declines. Following the sharp rally witnessed in March and April—driven by supply disruptions, soaring freight costs, and aggressive buying—markets gradually weakened from May onward, with PP and PE experiencing particularly steep corrections. PVC also entered a downward trend earlier after its March gains faded.

Recently, stronger crude oil prices fueled by renewed geopolitical tensions in the Middle East have improved market sentiment, encouraging some buyers to return with fresh inquiries after weeks of limited activity. Market participants believe the prolonged downtrend may be nearing its end, although most remain cautious about the pace of any recovery.

Adding to the improved outlook, firmer pricing signals from China and expectations that European polymer markets are approaching a bottom have strengthened confidence. However, many players emphasize that higher feedstock costs alone are unlikely to drive a sustained recovery unless downstream demand also improves.

PP demand shows early improvement

Traders reported a noticeable increase in inquiries for homo PP during the week, even though trading activity was affected by the national holiday. Buyers who had been relying on existing inventories began returning to the market to secure limited volumes amid concerns that prices could move higher.

Despite this improvement, processors remain cautious. Manufacturers in sectors such as woven sacks and carpets said future price increases will depend on stronger downstream orders. Many buyers are already covered for the coming weeks, while slower demand during Europe's summer holiday season may continue to limit purchasing activity.

US PE suppliers adopt firmer pricing

The recent recovery in crude oil, naphtha, ethylene, and propylene prices has also strengthened sentiment among PE suppliers.

Several traders noted that US-origin PE sellers have stopped offering the heavily discounted prices seen in previous weeks. Some producers have either withdrawn offers temporarily or introduced modest price increases as production costs improved.

Market participants believe buyers who delayed purchases during the recent price slide may gradually return as prices stabilize. However, companies holding comfortable inventories are still expected to buy only when necessary until downstream demand improves more significantly.

PVC market begins to stabilize

Turkey's PVC market also showed signs of stabilizing after months of heavy price corrections. Rising feedstock costs and expectations that major Asian suppliers have largely completed their downward price revisions have improved seller confidence.

Import PVC markets in China and Southeast Asia have also strengthened, providing additional support to regional sentiment.

Although overall supply remains sufficient, many traders believe the scope for further price reductions has become limited. Several converters secured US-origin K67 cargoes below $700/ton CIF in recent weeks, viewing current price levels as close to the market bottom.

Market participants noted that the combination of stronger crude oil prices and significantly corrected PVC values has encouraged some buyers to re-enter the market. Others added that several South Korean suppliers have started withdrawing earlier offers, reinforcing expectations that PVC prices may soon establish a floor.

While sentiment has improved, most players agree that any lasting recovery will ultimately depend on stronger downstream demand rather than higher production costs alone.

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