Turkey's PP and PE Rally Slows as Falling Oil Prices Trigger Buyer Resistance

Turkey’s imported PP and PE markets have started to encounter stronger buyer resistance after weeks of steady price increases. Since mid-July, tightening supply and rapid sales enabled sellers to lift prices significantly, but the recent decline in crude oil prices has weakened market confidence and made buyers more cautious. Although suppliers continued to announce higher offers for August and September shipments, many processors have become reluctant to accept additional increases amid softer energy markets and slow downstream demand.

The recent correction in crude oil has shifted sentiment across the polyolefin market. Brent crude has retreated sharply from its recent highs, easing concerns over supply disruptions in the Middle East. While oil prices remain above the lows seen in June, the latest decline has raised doubts about whether recent resin price increases can be sustained. Market participants believe the weakening feedstock trend could limit further upward movement, even though prompt polymer availability remains tight.

The PP market has remained relatively firm because imported supply is still limited. However, traders say buying momentum has slowed compared with the previous two weeks. A wider gap has emerged between prices for prompt cargoes and new import shipments, creating uncertainty over the true market level. Demand has remained healthier for immediate delivery material, particularly for PP non-woven grades, while interest in longer-term shipments has weakened as buyers avoid committing to higher-priced cargoes.

The PE market is also showing signs of resistance. Middle Eastern and European suppliers introduced higher August offers, supported by stronger production costs and limited inventory pressure. However, Turkish buyers have largely resisted these increases, arguing that downstream demand has not improved enough to justify the higher prices. Many processors are only purchasing essential volumes, preferring to wait for clearer market direction before placing larger orders.

US-origin PE offers have also started to lose momentum after buyers pushed back against elevated prices. Although suppliers initially tested significantly higher offer levels, weaker purchasing interest forced some traders to revise their expectations. Market discussions indicate that lower-priced offers have begun to reappear in certain cases, reflecting the growing caution among buyers.

Another factor influencing purchasing decisions is the delivery timing of imported cargoes. September and October shipments are viewed as relatively risky because they are expected to arrive closer to the year-end period, when demand remains uncertain. As a result, many traders continue to avoid building inventories and instead purchase only against confirmed orders.

Despite softer buying interest, prompt material within the local market remains limited, allowing domestic premiums to stay firm. While buyers are increasingly resisting higher import offers, the shortage of immediately available cargoes is expected to continue supporting local prices unless supply conditions improve significantly.

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