Buyer resistance fuels fresh cuts in Türkiye's PP and PE markets

PP prices in Türkiye had started to see downward corrections from late April, while PE offers began to soften in May. By June, however, the return of Middle Eastern production capacity and slowing demand pushed both markets into free fall. Moreover, the rapid decline continued this week. Imported PP raffia, LLDPE C4 film, and HDPE film prices broke below new thresholds amid intensifying competition and sluggish global demand.

Aggressive South Korean offers dominated discussions in the PP raffia market, while US-origin PE also witnessed notable week-on-week price cuts.

War premiums unwind at a faster pace than in May

After polyolefin prices tumbled at an almost daily pace last week, the downward trend continued unabated this week. Despite lingering uncertainties, the U.S.-Iran war—which had upended commodity and logistics markets for nearly four months—has largely moved toward a conclusion, pulling both Brent and WTI crude oil prices back to their pre-war levels. As traders rushed to offload high-cost inventories, PP and PE prices extended their declines. Meanwhile, buyers’ persistent calls for lower purchasing targets and demands for a return to pre-war price levels have left sellers under mounting pressure.

According to ChemOrbis weekly averages, Saudi Arabian PP raffia has lost $410/ton (25%) since the correction cycle began roughly two months ago. Even after this steep decline, prices remain $330/ton (35%) above pre-war levels. In the PE market, U.S.-origin LLDPE C4 film and HDPE film have shed $700-720/ton (39%) over the same period, although current averages still indicate premiums of $185-200/ton (20-21%) over late-February levels at the time of writing by early Thursday.



South Korean PP raffia steals the spotlight

The emergence of aggressive South Korean offers against Saudi Arabian PP raffia, which had already fallen to as low as $1250/ton CIF Türkiye by the end of last week, drew particular attention. Duty-free South Korean prices, which had been hovering above $1450/ton only a few weeks earlier, dropped to $1250/ton at the beginning of this week before quickly touching the $1200/ton CIF mark. A few counterbids were even reported at $1,180/ton, although most buyers were said to be reluctant to commit to these long-haul cargoes, which are unlikely to arrive before late September or October. “Even so, converters keep bringing these low-priced Korean offers to the negotiating table as leverage,” a trader commented.

A very similar trend was observed in Vietnam. South Korean raffia, which had been priced slightly above $1150/ton CIF Vietnam as recently as last week, fell to the $1100/ton threshold this week, putting it in direct competition with Chinese-origin raffia offered at $1050/ton CIF.

American PE takes the wheel

In the import PE market, it would not be an exaggeration to say that the US offers have firmly taken the driver’s seat. U.S.-origin LLDPE C4 film and HDPE film, which had fallen to the $1150/ton CIF Türkiye threshold just a few days earlier, wasted little time breaking that level below. By midweek, offers were reported below $1100/ton in some cases. The sharp decline is largely attributed to elevated inventory levels in the United States.

“We believe US producers are trying to clear material before the end of the second quarter. Demand has not only dried up in Türkiye, but also across Africa, Europe, and Asia,” several market players commented.

Buyers set their sights on pre-war levels

The views of many market participants who believed polyolefin prices would not return to pre-war levels at any point in 2026 have shifted in recent days, despite the downward corrections seen over the past month. Referring to the latest lows in Asia, some buyers argue that offers in Türkiye need to fall further, warning that sellers will otherwise struggle to find takers.

“Considering that there are currently no supply issues, production costs have declined significantly, and global PE markets remain weak, LLDPE and HDPE offers in Türkiye should move into three-digit territory, especially given the country’s strained cash cycle,” said one converter. “Similar fundamentals are at play in the PP market, where buyers continue to hold the upper hand despite rising container freight rates from China.”

A trader shared a similar view, commenting: “The gap between import LDPE film and LLDPE film prices has widened considerably. Since LLDPE prices are unlikely to increase, the import LDPE market is expected to move lower as well, particularly if Petkim announces fresh reductions and European offers continue to come down.”