European producers trying to manage ample supply
European producers are believed to be scaling back their production. Although it has only been Borealis that officially announced lowering operating rates at its PP and PE plants to 73-75% from 80-85% in May, other producers are also heard to be at reduced rates. An official distributor of a West European PVC producer in Italy said, “We have less availability this month as our supplier has reduced its operating rates due to lethargic demand across Europe.”
Regional producers have also kept an eye on export markets in order to relieve their accumulating stock pressure. An influx of European PP, PVC and PE materials has found its way to the nearby markets including Turkey and Egypt at relatively attractive prices. The weakening stance of the euro against the US dollar has been to the advantage of European sellers as they can move their cargoes to these outlets more easily.
This has been particularly obvious in Turkey, where European cargoes have been widely offered at lower levels on a weekly basis. Their exemption from customs duty has also added to their competitiveness in Turkey’s import market against other regular Middle Eastern and Asian origins.

(Source: ChemOrbis Price Wizard)
In the PE market, the Turkish market has seen offers from Europe on CFR, cash basis standing €70-110/ton below the lowest local spot prices in Italy. As can be seen from the graph above, Italy’s local spot prices have maintained their premium over Turkey’s overall import prices including customs duties if applicable.
Likewise, plentiful European PP cargoes have been seen streaming into Turkey at lower levels. Although the import homo PP offers made to Turkey on CFR basis and the low end of the local spot prices in Italy appear to be coming closer recently, the difference between the two regions remains wide on average.
In the PVC market, the difference between two regions is the widest with import European PVC offers made to Turkey this week standing €70-90/ton below the local k67 offers reported in Italy’s spot PVC market.
More free plastics news
Plastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...- March hints at further hikes in European PP, PE markets
- India’s PVC market dips to new lows on Taiwan’s March cuts, players seek signs of bottom
- Q1 turnarounds uplift Mid-East PP, PE markets in February; will it spill over to March?
- SE Asia’s indefinite PE shutdowns: A market in crisis as demand woes threaten survival
- Türkiye’s PPH markets perform better than copolymers in February
- Margin recovery priorities outweigh supply imbalances in European PVC markets
- Asian PVC demand stagnant; recovery hopes shift to end of Q1
- Tough slog in S Korea’s petchem industry spells disappointing 2024 financial results; will government's recent plan help weather the storm?
- China’s PP, PE markets face post-holiday supply surge and tepid demand
- A tug-of-war unfolds in Türkiye as PVC demand struggles against rising costs