PP continues downward spiral in Sept amid persistently weak demand in Türkiye

Import PPH prices hit year-to-date lows this month, according to the latest weekly average data from ChemOrbis. Copolymer prices followed suit, as demand conditions failed to improve for both grades in Türkiye. Earlier hopes for a potential increase in export orders from Europe after the summer holiday faded among manufacturers while diminishing seasonal support kept purchases to a bare minimum.

Markets grapple with subdued derivatives, financial challenges

Several carpet and textile converters reported operating their factories at around half capacity, citing a lack of demand recovery from export markets, even after the summer break in nearby Europe. A raffia converter similarly noted, “The off-season is rapidly approaching, and low domestic consumption, coupled with liquidity issues, continues to disrupt downstream markets. As a result, resin demand remained muted for another month.”

A supplier agreed, stating, “Our customers preferred to purchase only their basic needs, and only when offered a significant discount. Although logistics costs remain relatively high and transit times are still long, weak sentiment in derivative markets has significantly dampened buying interest.”



Saudi raffia emerges below $1100 CIF for first time since April

Last week, Saudi Arabian import PP raffia prices neared low-$1100s per ton CIF Türkiye while price cuts gained further momentum this week. Some volumes were sold at $1080/ton CIF Türkiye, subject to 6.5% customs duty, cash, although this level was not widely confirmed at the time of writing.

According to ChemOrbis, Saudi PP raffia was last reported below the $1100/ton CIF threshold in April this year. Overall, the weekly average level pointed to the lowest figure since 2024 started.

As for fibre, import prices hovered around last week’s levels, with a source from a global PP supplier commenting that sellers would not be able to boost their sales even if they cut their offers further. “This is not about PP fibre faring better than other grades but is about a lack of price discussions,” he added.

South Korean PPH finds way to Türkiye amid juicy netbacks

In the meantime, an increasing number of players have been reporting South Korean PP prices at/close to the low end of the import raffia market since September kicked off. This can be attributed to the recent losses in freight rates, which kept the arbitrage window open from the region to Türkiye. Prices for PP raffia varied between $1130-1170/ton CIF, no duty, with a few deals on the low end. As a related note, PPBC inj. offers from South Korea broke below $1250/ton CIF, no duty in response to dutiable Saudi cargos below the $1200/ton CIF mark and lethargic demand.

Following renewed price cuts, Türkiye’s premium over China narrowed from $240/ton to $210/ton for Saudi Arabian PPH origins, while the gap with Southeast Asia was down from $175/ton to $145/ton week over week. This was also because import PP prices did not change much this week across Asian markets.

Still, Turkish players believe that PP prices may have room for further discounts unless activity picks up into October, saying that the year-end lull will start, and traditional destocking activities may take place in Q4 under the shadow of macroeconomic headwinds. “We may see the market touch $1050/ton CIF next month,” a player noted.