Turkey PP and PE Markets Target Further Gains as Prices Reach Four-Month Highs

Turkey’s polypropylene (PP) and polyethylene (PE) markets began November under renewed upward pressure, with initial supplier announcements and higher selling indications suggesting that October’s rally could continue. Despite Brent crude futures falling by more than 7% on Monday to below $105/bbl amid renewed optimism over US-Iran negotiations, the decline in oil prices had yet to significantly weaken polymer market sentiment.

Following the national holiday, limited material availability remained the primary factor supporting sellers’ pricing strategies. Several suppliers had not yet announced their official November offers, but market expectations largely pointed toward further increases. Buyers’ willingness to accept the new price levels remained uncertain.

Early November indications included higher US PE offers, fresh increases from a major Saudi producer across PE and PP copolymer grades, and additional upward attempts by traders for homo PP. The continued absence of Russian polyolefin cargoes further tightened supply, while some PP fibre buyers reported ongoing delivery delays from Middle Eastern suppliers.

However, persistent liquidity constraints and subdued demand in certain downstream sectors continued to limit the potential for substantial price gains. Sellers were nevertheless seeking to protect margins amid restricted prompt availability. Converters, meanwhile, remained under pressure as they struggled to pass higher resin costs on to finished products since the beginning of the third quarter.

A PE producer commented, “If Brent breaks below $100/bbl, buyers may go to the sidelines.”

PP: Supply Constraints Encourage Further Price Increases

Traders in Turkey’s PP market started November with renewed attempts to raise prices for homo PP grades. The continued lack of Russian spot cargoes reduced sourcing options for buyers, while Saudi Arabian allocations remained limited, according to market participants.

These supply constraints encouraged sellers to test prices at or above the $1400/ton CIF level for raffia and fibre grades early in the week. Domestically, Petkim also increased its prices by $20/ton compared with late October.

Buyers remained cautious about accepting further increases after the cumulative price gains seen over recent months. Nevertheless, limited prompt availability continued to strengthen sellers’ positions. Market participants are now monitoring whether fresh import allocations will ease supply pressure later in November.

According to weekly average data from ChemOrbis Price Wizard, Saudi Arabian PP raffia, fibre and PPBC injection prices finished October at their highest levels since June.

PE: Saudi Increases and Higher US Offers Support the Market

Weekly average data from ChemOrbis Price Wizard showed that Middle Eastern import LDPE, LLDPE and HDPE film prices ended October at their highest levels in four months.

The PE market also entered November on a firm footing. Petkim raised its list prices by $30-60/ton, depending on the grade, while initial US import indications emerged approximately $50/ton above October levels.

Following the national holiday, a major Saudi producer announced substantial November increases for PE, followed by additional hikes on Monday.

Although the sharp decline in crude oil prices raised questions about the sustainability of cost-driven increases, restricted import availability and an €80/ton rise in November European olefin contracts continued to support sellers’ firm stance.

Still, converters’ ability to absorb further increases remained uncertain. The extent of November price gains is expected to depend largely on actual supply conditions, buyers’ purchasing requirements and movements in crude oil prices.

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