Turkey’s Polyolefin Markets Slide Deeper as June Declines Accelerate

Turkey’s import and domestic polyolefin markets faced intensified downward pressure during the second half of June, as the corrections that began in May turned into much steeper price declines. After the sharp rally seen in March and April, fueled by geopolitical tensions and supply concerns, PP and PE markets are now moving rapidly lower amid weakening costs, improving supply conditions, and sluggish demand.

The easing of Middle East tensions has significantly reduced concerns over supply disruptions, while falling crude oil, naphtha, and feedstock prices have weakened cost support across the polymer chain. At the same time, ample product availability and poor downstream demand have strengthened buyers’ negotiating power.

South Korean Offers Reshape Market Dynamics

One of the key developments this week was the emergence of highly competitive South Korean offers across several product segments.

In the PE market, South Korean LDPE film offers were reported at notably lower levels than competing Middle Eastern material, providing buyers with an attractive duty-free alternative. The arrival of these aggressive offers increased pressure on other suppliers, forcing additional downward price adjustments across the market.

The PP segment also witnessed substantial weakness. South Korean homo-PP raffia offers moved lower during the week, while PP copolymer grades such as PPBC and PPRC also recorded significant reductions. Market participants reported that some traders had started liquidating inventories more aggressively as expectations for further declines continued to grow.

Several players noted that the traditional premium enjoyed by PP copolymers over homo-PP grades has narrowed considerably amid the current market downturn.

PP and PE Prices Continue to Fall

Import homo-PP raffia prices have fallen steadily since early June after weaker-than-expected post-holiday demand coincided with improving regional supply availability. Market participants reported that offers continued to move lower throughout the week, with many buyers expecting additional decreases in the coming weeks.

The PE market experienced a similar trend. Import LLDPE film values extended their decline as sellers struggled to attract buyers. Both US and Middle Eastern suppliers faced growing resistance from converters, many of whom continued to delay purchases in anticipation of lower prices.

According to market participants, buying ideas have dropped significantly below current offer levels, highlighting the widening gap between sellers' expectations and buyers' targets.

Buyers Remain on the Sidelines

Weak downstream demand remains one of the largest obstacles to market recovery. Converters continue to purchase only for immediate needs, while expectations of further declines discourage inventory building.

Additional pressure stems from economic uncertainty, limited cash flow throughout the manufacturing sector, and concerns about export demand. The approaching summer holiday season in Europe, an important destination for Turkish manufactured goods, is also expected to weigh on finished product demand in the coming weeks.

Many players believe that buyers will remain cautious until prices reach levels considered attractive enough for stock replenishment.

Outlook Remains Bearish

Market participants largely expect the downward trend to continue into July. Lower feedstock costs, softer global polymer markets, easing geopolitical risks, and comfortable supply availability are all contributing to a buyer-dominated market environment.

While higher freight rates on some trade routes may provide limited support to import costs, most players believe this will not be enough to offset the broader bearish fundamentals.

Until demand shows meaningful improvement, the market is likely to remain under pressure, with buyers maintaining a wait-and-see approach and sellers continuing to offer concessions in an effort to secure business.

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