Global PP and PE sellers approach Türkiye with hikes for January

Türkiye’s polyolefin markets opened 2025 on firm footing, as projected, with global sellers seeking price hikes on the heels of limited import volumes and margin concerns. Having depleted their stocks, PP suppliers had already pioneered an upward trend in late December, while PE followed suit as 2025 began. Limited quotas from Saudi Arabian and Russian producers propelled PP even higher as of January, while LDPE emerged as the strongest PE product, supported by robust demand and Petkim’s higher domestic prices.

Homo-PP fares better than copolymers

Most suppliers opted to raise their list prices further this week, citing limited allocations of Saudi Arabian and Russian homo-PP grades. Some mainstream producers were absent from the market due to a lack of volumes, which allowed distributors in the locally-held market to adopt a firmer stance. A source from a Saudi Arabian producer stated, “Sellers’ need to recoup margin losses from late 2024 became a key focus as the new year began, while limited stock levels provided significant encouragement. Regarding demand, the upturn sparked some buying interest, although derivatives activity remained muted.”

A raffia consumer argued, “We believe the main driver pushing prices higher has been active demand. Supply may not be as tight as suppliers claim.”

A textile converter observed, “Fiber has experienced more visible gains than raffia, with prices climbing to nearly $1100/ton CIF, subject to a 6.5% customs duty for limited Saudi volumes. Meanwhile, we plan to monitor the outcome of the carpet fair in the coming term.” Players gathered at the CFE 2025 Carpet and Flooring Expo in Istanbul from January 7-10.

In the meantime, PP copolymer prices displayed a more cautious firming trend as demand for imports lagged behind the price increases. Adding to the market’s uncertainty were competitive locally-held offers for prompt cargoes, traders admitted. “We continued to hear of prompt PPBC injection materials priced below $1500/ton including VAT, which capped hike targets among import sellers,” one trader noted.



PE up on tight prompt supply, LDPE hikes stand out

Middle Eastern sources adopted a bullish stance for the new month, with a few even seeking hikes of up to $80/ton initially. Although these levels were reduced due to lower bids from buyers, import PE prices still reflected monthly hikes of $30-40/ton in several cases. According to market players, limited availability from Iran and Uzbekistan supported the sentiment, particularly for HDPE.

“Tighter availability following an intensified depleting period helped global PE sellers renew confidence. Moreover, jitters over the arrival of previously secured US cargos also aided the sentiment along with a port strike threat in the country at a time when Middle Eastern cargos at bonded warehouse dried up,” players said. In the meantime, the latest news suggesting that unions and employers in the US have reached an agreement has somewhat eased supply concerns in the markets.

LDPE outperformed LLDPE and HDPE, which did not surprise players, given the growing pressure from negative netbacks to Asia for this product, leading to restricted Middle Eastern supplies in Türkiye. Contributing to the notable price gains for LDPE were strong demand and higher prices from the local producer, Petkim.

European LDPE followed suit, with the lower €/USD parity at 1.03 prompting €50-70/ton increases month over month, bringing offers to €1200-1230/ton ($1236-1267/ton) CIF, no duty. This was despite stable ethylene contracts in the region. The rising euro-based offers to Türkiye also aligned with a brighter sentiment in Europe’s spot LDPE market compared to other PE products this month.

Near-term outlook remains bullish for polyolefins

Feeling free from stock pressure, import PP and PE sellers are expected to maintain their firm stance in the short term, aiming to recover losses incurred in Q4 2024. Additionally, logistical disruptions stemming from the Red Sea issue continue to affect all markets, prolonging lead times. Meanwhile, the state of demand in China and India ahead of the Lunar New Year holiday warrants attention, along with the potential impact of imminent trade barriers by the Trump administration on global trade.

A major supplier commented, “Demand will cool off at some point unless downstream segments show a strong recovery. Therefore, we do not believe Turkish PP and PE consumers can absorb significant price hikes moving into February.”