Import PP and PE prices in Türkiye hit fresh lows as sellers chase demand

Türkiye’s import polyolefin markets started June with fresh price cuts, as post-Eid buying appetite failed to recover. With expectations for further declines keeping converters on the sidelines, import PP and PE prices for certain origins subject to the 6.5% customs duty dropped to new key thresholds at the lower end by the start of the second week of the month.

Correction: A factual error was made regarding the Saudi Arabian PP fiber grade price mentioned in the second paragraph of the news article. The figure has been corrected from $1,450/ton to $1,550/ton.

Saudi Arabian PPH sinks to $1400 CIF on the low end

In the first days of June, Saudi Arabian raffia and fiber offers were discussed at $1450/ton and $1540-1550/ton CIF Türkiye, respectively, already pointing to notable declines from pre-Eid levels. By the start of this week, Saudi raffia had fallen to the $1400/ton threshold, while Saudi fiber offers were reported at $1550/ton at the time of writing. According to ChemOrbis Price Index weekly average data, the market has effectively reverted to the levels recorded during the second week of the Middle East war for this origin. Even so, current prices continue to carry a significant premium over pre-war levels.

American LLDPE C4 film breaks below a critical threshold

Similarly, the PE market entered the week with fresh declines. Traders adopted a more aggressive pricing strategy for US-origin LLDPE C4 film. On Monday, prompt-arrival US LLDPE C4 film was seeking buyers at $1400/ton CIF Türkiye, while on Tuesday, some new shipment volume was offered at $1350/ton CIF. According to weekly average data, US offers began to see downward corrections after peaking above $1800/ton in mid-April. Prices for this origin have now been declining for seven consecutive weeks. However, at the time of writing, it remained unclear whether buyers would be willing to commit to long-distance cargoes following the latest price cuts.

Players wonder how much further prices can fall

While the ongoing demand deadlock has remained the primary driver behind the declines in both PP and PE prices, a relatively easing supply outlook, as most polymer plants in the Middle East gradually return from outages, has contributed to the faster pace of corrections. Weak demand signals across global polyolefin markets, combined with volatile crude oil prices that have so far failed to generate lasting upward momentum despite some rising tension in the Middle East over the weekend and converters’ increasing unwillingness to accept prices far above Asian levels, continue to weigh on sentiment and pull the Turkish market lower.

Some PP raffia consumers believe offers may break below the $1400/ton CIF threshold in the second half of the month. As for US-origin LLDPE C4 film, some converters still consider the current level of $1350/ton CIF unworkable or too risky. One converter commented that, if market activity fails to improve, transaction levels could fall as low as $1200/ton next month.