Turkey’s PE Prices Rise Again as Tight Supply Limits Availability

Turkey’s polyethylene market started October with another round of price increases across both import and domestic markets as persistent supply shortages continued to support sellers. LDPE and HDPE film remained particularly difficult to source, while additive-free LLDPE C4 film has also recently become tighter. Limited sourcing options, extended delivery times and elevated freight costs have further complicated replenishment amid ongoing disruptions in global logistics.

The week-long absence of Chinese suppliers during the October 1-7 holiday had little impact on market sentiment. Sellers continued to hold the stronger position as buyers struggled to secure certain grades for immediate requirements.

In the domestic market, notional LDPE and HDPE film prices increased by $60/ton from the previous week due to declining prompt availability. LLDPE prices also moved up by $50/ton.

HDPE premium expands as alternatives become limited

HDPE film has become one of the tightest products in the market, causing its premium over LLDPE C4 film to widen as buyers find fewer sourcing alternatives. Availability of blow molding grades has also become more restricted.

Russian spot cargoes remain largely unavailable, while Uzbek suppliers have only limited quantities. Saudi producers are also offering relatively small allocations, leaving Turkish buyers increasingly dependent on a narrower range of suppliers.

LDPE availability remains constrained as Petkim stocks are modest and import options have decreased. Prompt supplies of additive-free LLDPE C4 film have also tightened, extending the supply pressure across the wider PE market.

With availability restricted across major grades, prices have continued to move higher. However, the tighter supply of HDPE film has allowed it to command a larger premium over LLDPE C4 film.

ChemOrbis Price Index data for the week ending October 2 showed Middle Eastern HDPE film carrying a $30/ton premium over LLDPE C4 film on a weekly average basis. The two grades had traded broadly at similar levels for much of the year before HDPE film moved above LLDPE C4 film during the first half of September.

Logistics problems add to supply pressure

Difficult logistics have further intensified concerns over supply. Longer lead times and high container costs are making it harder for buyers to replenish stocks from distant origins. Freight capacity from Asia has also reportedly declined, reducing the possibility of quickly replacing missing volumes from Russia, Uzbekistan and the Middle East.

Lower procurement of Iranian material has added another limitation to sourcing options.

Turkey’s unfavorable netback levels compared with Asian markets have also encouraged producers to direct more volumes toward alternative destinations. This has contributed to reduced availability in the Turkish market.

According to ChemOrbis weekly average data for the week ending October 2, Middle Eastern PE film prices on a CIF Turkey basis carried premiums of around $80-100/ton over China. However, the same material remained at discounts of approximately $70-100/ton compared with import PE film prices in India. The price gap has reduced the incentive for suppliers to allocate additional volumes to Turkey.

Supply concerns outweigh seasonal demand factors

Supply constraints have so far overshadowed the seasonal weakness that would typically become more noticeable as the market approaches the final months of the year.

Converters could become more cautious about accepting further increases as year-end approaches, but the immediate market direction remains largely determined by restricted availability, high logistics costs and firm upstream conditions rather than seasonal demand.

As a result, Turkey’s PE market entered October with another round of price increases. The Chinese holiday has not triggered the usual cautious sentiment among Turkish buyers, with supply availability remaining the primary concern.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.