Turkey PP and PE Prices Rise Further as Tight Supply Meets Higher Costs

Turkey’s PP and PE markets continued their upward trend in September, supported by a sharp increase in energy costs and ongoing supply constraints. Brent crude moved above $100/bbl during the week and then exceeded $105/bbl on Thursday, strengthening sellers’ cost-based arguments and reducing their willingness to offer discounts on imported material.

At the same time, continued logistics disruptions, extended delivery times and limited availability from several origins have maintained a supportive supply environment. This has allowed suppliers to push prices higher even though downstream demand has yet to show a broad-based recovery.

Some buyers have secured partial volumes in response to successive increases, but high replacement costs and restricted availability continue to favor sellers. Rising import polyolefin prices in China, Vietnam and India, particularly for LDPE, have also added support and outweighed the relatively slow post-summer recovery in Europe.

PP Gains Strengthen on Higher Costs and Limited Supply

Import PP prices moved higher again this week as the renewed crude oil rally added further cost pressure to a market already facing restricted availability and war-related supply disruptions.

Higher production costs have encouraged suppliers to maintain their upward targets, while weak netbacks in Turkey have continued to discourage regular overseas suppliers from aggressively offering cargoes.

Logistics remain an important factor behind the market’s strength. Seaborne Middle Eastern cargoes are facing disruptions and longer delivery schedules compared with trucked material, while Russian spot availability remains limited. As a result, prompt and nearby cargoes are commanding premiums, leaving buyers with fewer sourcing alternatives despite growing resistance to repeated price increases.

Demand remains an important factor for the sustainability of the rally. Some converters are hesitant to build large inventories after the sharp recovery from summer lows, particularly as downstream margins remain under pressure and liquidity is tight.

Nevertheless, sellers currently have limited incentive to make significant concessions because of restricted stocks. This has encouraged some buyers to return to the market to cover their immediate autumn requirements.

Saudi Arabian PPH raffia prices on a CIF Turkey-equivalent basis are currently only $10/ton above Middle Eastern raffia and injection offers in China, highlighting the upward pressure on the Turkish market.

PE Rally Continues, with LDPE and HDPE Tightest

PE prices have also continued to rise in September, although the pace differs across grades. LDPE and HDPE film remain the most strongly supported products due to tight domestic and import availability.

The latest crude oil surge has strengthened the overall pricing environment, giving Middle Eastern and US suppliers greater confidence in raising their targets. Tight availability has also reduced the price gap between US and Middle Eastern material, with US offers now exceeding Middle Eastern levels for some grades.

Limited availability from Russia and Uzbekistan has further reduced sourcing options, particularly for HDPE.

US LLDPE C4 film prices climbed to $1,100/ton CIF or higher this week, compared with $1,060–1,080/ton CIF in transactions reported last week. Market participants also noted that HDPE film remains significantly more expensive than LLDPE.

The domestic PE market is receiving additional support from higher replacement costs, while distributors remain cautious about rebuilding inventories because of uncertain delivery schedules. Temporary production problems affecting certain LDPE grades at domestic producer Petkim have also generated additional buying interest during September.

As a result, buyers could find it difficult to obtain discounts for prompt LDPE and HDPE film, even with uneven downstream demand. However, the rapid accumulation of gains since mid-July could eventually challenge converter acceptance, particularly in LLDPE.

For now, the combination of rising crude oil prices and persistent supply restrictions continues to favor sellers. The September rally is likely to retain momentum unless energy prices reverse sharply or increasing buyer resistance limits further price increases.

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