Cost Support Returns to Turkey's Polymer Markets, Reviving Buying Interest

Turkey's polymer markets are showing early signs of stabilization after several weeks of sharp price declines. Following the strong rally seen during March and April—driven by supply disruptions, rising freight costs, and aggressive buying—the market entered a prolonged correction. While PVC prices started weakening earlier, PP and PE markets experienced steeper declines from May onward, with prices falling rapidly through mid-June.

Recent geopolitical tensions in the Middle East have pushed crude oil prices higher once again, providing fresh cost support and improving overall market sentiment. As a result, some buyers have returned to the market with new inquiries after remaining inactive for several weeks, suggesting that many now believe the prolonged downturn may be nearing its end.

Improving sentiment has also been supported by modest price increase attempts in China and expectations that European polymer markets may soon find a floor as stronger feedstock prices begin to offset seasonal weakness.

Higher costs improve sentiment, but demand remains key

Market participants believe rising production costs have helped slow the recent decline, but many remain cautious about calling it the beginning of a sustained recovery.

Unlike the earlier rally, current market conditions are not being driven by major supply disruptions. Material availability remains comfortable, and industry players agree that a lasting recovery will depend on stronger downstream demand rather than higher feedstock costs alone.

PP inquiries increase, but buyers remain cautious

Traders reported a noticeable improvement in inquiries for homo PP during the week, despite a national holiday. Buyers who had relied on existing inventories have started returning to the market to secure limited volumes amid concerns that prices could move higher.

However, converters continue to purchase cautiously. Manufacturers of sacks, carpets, and other finished products noted that higher resin prices can only be sustained if downstream demand improves. Many buyers already have sufficient inventories to cover production through mid-September, while the approaching European summer holidays are expected to keep purchasing activity limited.

US PE suppliers adopt a firmer approach

The recent rise in crude oil, along with stronger naphtha, ethylene, and propylene prices, has encouraged PE suppliers to adopt a firmer pricing strategy.

US-origin PE sellers, who had previously offered heavily discounted cargoes, have either withdrawn low-priced offers or introduced modest price increases. This shift has improved seller confidence, although buyers with comfortable inventories continue to purchase only when necessary.

Market participants believe that converters who delayed purchases for an extended period may gradually return to the market if prices continue to stabilize. Nevertheless, stronger downstream orders will be essential for any meaningful recovery.

PVC market begins to stabilize

Turkey's PVC market also showed signs of finding a floor after months of continuous declines. Higher upstream costs, together with expectations of firmer benchmark prices from major Asian suppliers, have improved seller confidence.

PVC prices in China and Southeast Asia have also stabilized, providing additional support to the local market.

Despite this improvement, supply remains sufficient, limiting the scope for significant price increases. However, many buyers now believe that further price reductions may be limited. Several converters have secured US-origin K67 cargoes below $700/ton CIF, viewing current levels as an attractive buying opportunity.

Market participants also noted that some South Korean suppliers have begun withdrawing previous offers, reinforcing the view that the market may be approaching its bottom after an extended period of price corrections.

Outlook

The recent improvement in oil and feedstock prices has restored some confidence across Turkey's polymer markets and encouraged buyers to re-enter the market. While this may help stabilize prices, industry participants believe a sustained recovery will ultimately depend on stronger demand from downstream industries rather than cost support alone.

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