Import PP raffia breaks below the psychological $900/ton CIF mark in Türkiye

Türkiye’s PP market extended its losses into September, as sellers’ earlier hopes for a demand revival with Europe’s return from the summer holiday were overshadowed by weakness in China. By mid-September, Saudi Arabian PPH prices broke through critical thresholds not seen in five years, with raffia in particular dipping below $900/ton CIF for select grades, according to ChemOrbis data.

S. Arabian PPH offers hit a 5-year low

Following last week’s reports that a Saudi Arabian producer conceded to $900/ton for raffia and $940/ton for fibre, all CIF Türkiye, subject to 6.5% customs duty, cash, an increasing number of players confirmed fresh lows at $880–890/ton for raffia and $930/ton for fibre. Players also pointed out that raffia prices below $900/ton CIF applied only to select grades. According to ChemOrbis data, prices were last seen under these thresholds during June–August 2020.

Impact of weak China on sentiment

A sack converter commented, “Sellers are desperate to sell, as they struggle to move volumes. Prices fell by another $10–15 this week. I heard that some South Korean suppliers have withdrawn amid plans to cut capacity, since they were selling at a loss. Sack operating rates hover at 40–50%, with some plants temporarily running at 60% when tenders are secured. Weak demand remains the main factor, forcing sellers to undercut prices.”

Meanwhile, China’s PP markets continued to decline into mid-September, pressured by sluggish domestic demand, weak futures, and persistent oversupply. Despite the onset of what is typically a peak demand season, both local and import prices stayed under pressure. Market participants reported scant buying interest, with most buyers sticking to hand-to-mouth purchases. Even firm propylene feedstock values did little to stem further declines in PP prices.

With the lowest Middle Eastern PP raffia offers at $820/ton CIF China this week, the narrowing gap between Türkiye and China suggests that current prices in Türkiye are broadly reasonable. Market participants are now debating whether thin margins will set a floor for Türkiye’s import PP market in the near term.