Turkey PE Market Faces Further Downward Pressure as Buyers Wait for Better Deals

Turkey’s polyethylene (PE) market entered June on a weaker footing after the Eid al-Adha holidays, with demand remaining subdued and buyers continuing to delay purchases in anticipation of further price declines. Despite multiple rounds of discounts from suppliers, market activity has remained limited as participants believe prices have not yet fully adjusted to current market fundamentals.

The bearish sentiment intensified after domestic producer Petkim announced significant reductions in its PE prices. LDPE prices were lowered by $130/ton, while HDPE prices saw a sharper cut of $200/ton. These adjustments were accompanied by fresh price reductions from major Middle Eastern and US suppliers, increasing pressure across the market.

Market sources reported that several suppliers initially introduced moderate discounts but were later forced to return with deeper reductions after receiving little buying interest from converters and traders.

Supply expectations have also become more comfortable. Buyers are closely monitoring the gradual restart of PE production facilities in Jubail following disruptions earlier this year. As more production capacity returns, additional material is expected to enter the market during the coming months, easing supply concerns that had previously supported prices.

At the same time, softer market conditions across Europe and Asia have encouraged exporters to become more competitive, adding further pressure to Turkey's import market. The decline in the June European ethylene settlement has also contributed to lower PE pricing expectations.

Converters continue to resist current offer levels, arguing that prices still contain a premium built during the period of geopolitical tensions and supply disruptions. Many processors believe further corrections are necessary before purchasing activity can recover meaningfully.

US-origin PE cargoes have continued to move lower, with some LLDPE film offers approaching the $1400/ton CIF level. Middle Eastern suppliers are also facing strong resistance despite consecutive price reductions, while buyers continue to negotiate aggressively and purchase only for immediate requirements.

Key Market Drivers

• Weak post-holiday demand continues to limit buying activity

• Domestic and imported PE prices have been revised lower

• Supply outlook is improving as Middle Eastern plants gradually restart

• Softer conditions in Europe and Asia are increasing export competition

• Buyers remain cautious and expect additional price corrections

Market Outlook

Market participants expect PE prices in Turkey to remain under pressure in the near term. Improving supply availability, weaker global demand, falling ethylene costs, and cautious buying behavior are likely to keep sentiment bearish. Unless demand improves significantly, further downward price adjustments cannot be ruled out in the weeks ahead.

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