PVC Trails PP and PE Recovery in Turkey Despite Higher Cost Support

Turkey's polymer market continued to receive support from stronger feedstock costs and improving global sentiment this week. While PP, PE, and PVC sellers maintained firm pricing, demand trends differed across the three markets. Buyers remained active in PP and PE, whereas PVC demand softened as customers became more cautious after recent price increases.

PP and PE Benefit from Tight Supply

The recovery in polypropylene (PP) and polyethylene (PE) markets has been driven by both higher production costs and tighter material availability.

Suppliers from Russia, Saudi Arabia, and Uzbekistan have either sold out or significantly reduced prompt PP and HDPE volumes after strong sales in recent weeks. At the same time, several US PE suppliers either withdrew LLDPE offers or returned with higher prices due to lower inventory pressure.

Domestic producer Petkim also raised PP, LDPE, and HDPE prices, supported by healthy buying interest, particularly for LDPE.

With supply tightening and expectations of additional August price hikes, many buyers continued securing material despite the recent correction in crude oil prices.

PVC Faces Slower Buying Interest

Unlike PP and PE, the PVC market has struggled to maintain the same buying momentum.

Although US suppliers have increased PVC prices by more than $100/ton from late-June levels, and Chinese exporters also raised offers following higher Asian benchmark prices, Turkish buyers have shown increasing resistance to the latest price levels.

Many converters had already covered a significant portion of their August requirements earlier in the month by purchasing US-origin PVC at lower prices. Meanwhile, PVC supply remains more comfortable than polyolefins, reducing the urgency for additional buying.

Domestic Market Reflects Demand Gap

The difference in demand is also visible in Turkey's domestic market.

Prompt PP and PE prices continued to rise as supply remained limited, while local PVC offers stayed largely stable. Market participants noted that weaker demand and tight liquidity have prevented distributors from implementing meaningful PVC price increases despite higher import offers.

August Outlook Remains Mixed

Market participants expect higher European ethylene contracts, firmer PP and PE markets, and stable energy prices to continue supporting polymer sentiment in August.

However, PVC may remain under pressure unless downstream demand improves. Buyers continue resisting offers approaching $800/ton CIF Turkey, while the upcoming European summer holiday season could slow trading activity and limit sellers' ability to implement further price increases.

Overall, PP and PE appear better positioned to extend their recovery, while PVC's direction will largely depend on stronger end-user demand.

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