January opens with upward pricing ambitions in Türkiye’s PP and PE markets

Import polyolefin markets entered the new year with some price hike announcements in Türkiye, as had been anticipated earlier. Following the destocking activities and declines seen in the final months of last year, PP and PE offers witnessed increases as sellers needed to recoup their margin losses. In fact, limited inventories among regular producers outweighed the impact of declining monomer prices in Europe. High freight rates were also among the factors supporting sellers.

Buyers note that tightening supply is underpinning the new prices, and modest gains will likely be accepted. Yet, they also point out that the widening gap with Asian markets and the possible arrival of in-transit cargoes may cap the broader demand for certain products.

Shutdowns, elevated logistic costs underpin PP in early 2026

Mainstream Saudi Arabian and Russian suppliers entered the new year with reduced stocks after selling part of their January allocations toward the end of 2025. This, combined with elevated container prices, lent upward momentum to PP prices this week. For PP raffia, offers subject to 6.5% customs duty were centered at $850–870/ton CIF Türkiye, with bids at $845/ton being rejected. PP fibre prices slightly breached the $900/ton threshold on the high end, supported by a few turnarounds in Saudi Arabia, while the resumption of Egyptian offers provided only marginal relief to the market.

A source from a Saudi Arabian producer confirmed, “We had to implement sharp increases this month, as a scheduled turnaround at our lines significantly limited the volumes available to the market. Following bulky sales toward the end of 2025, some shipments may be pushed into early February.”

A similar pattern emerged in the PP copolymer market. Rising freight rates pushed South Korean PPBC injection offers higher for fresh shipments, while restricted availability supported new highs for Saudi Arabian cargos. However, a trader noted, “Our sales have not been particularly active, as higher levels faced resistance for long-haul Far East Asian origins. We expect a clearer picture next week once more buyers return to the market.”

Meanwhile, multiple buyers confirmed that a Middle Eastern producer had no January allocations for duty-free PPRC (Type 3) following heavy sales in December 2025. South Korean offers reached $1100/ton CIF, duty-free in some cases, while Saudi Arabian indications were considered too high to be workable. “Saudi Arabian sellers are reportedly favoring alternative markets amid better netbacks and stronger demand.”

PE producers approach market with hike attempts, HDPE film appears tight

PE sellers announced their January import offers with increases, while tight supply in certain products, such as HDPE film and general-purpose LDPE, supported the hike attempts. A Middle Eastern producer sold almost all of its January LLDPE and HDPE allocations toward the end of last week with increases of around $20/ton. Meanwhile, Saudi producers voiced January price targets calling for hikes of $40–50/ton.

The lack of clarity on new offers from the US reinforced expectations that producers would target price hikes. One buyer said, “It is clear that higher offers will come from US producers who sold large volumes in several outlets toward the end of last year. However, considering the cheaper cargoes on the way—especially for LLDPE—we do not know to what extent the new hikes will be accepted.”

Local producer issues higher PP and PE prices

Petkim opened the year with hikes of $30/ton for PP and $40/ton for HDPE, while lifting LDPE prices by $20/ton. Firmer import PP prices, the absence of fresh PE indications from the US, and constrained availability for certain products were cited as the main drivers behind the move. This pricing policy ran counter to lower ethylene and propylene contract settlements in nearby Europe, which typically influence the producer’s pricing decisions to some extent.

Market players explained, “Petkim secured solid sales during the industrial events in December, easing any pressure to stimulate demand at the start of 2026. At the same time, fading competitive LDPE offers from Europe, tight PP inventories, and the need to recover financial losses carried over from 2025 created room for upward adjustments.”

Players to monitor China’s pre-holiday demand amid widening gap with Türkiye

In the meantime, some polyolefin consumers in Türkiye voiced reluctance to pay prices significantly above current levels in China. Although freight rates and limited supply lend support to the near-term outlook—outweighing volatile oil futures—expected February arrivals may cause resin demand to ease in the coming period, they said.

At the time of writing, Türkiye’s PPH market carried a premium of $115/ton over Middle Eastern prices in China, according to ChemOrbis Price Index data. For PE, the gap stood at $135/ton for LDPE film, $160/ton for HDPE film, and $115/ton for LLDPE film on a weekly average. These spreads were driven by largely stable import prices in China versus hike announcements in Türkiye.

A global trader commented, ‘If China ramps up purchases either before or after the Lunar New Year holiday, the hike attempts in Türkiye would gain some footing and be reflected in transactions. This is because US sellers are expected to return with increases, and LDPE supply in Europe is said to be tight.

Meanwhile, domestic polyolefin inventories in China fell below the 600,000-ton threshold this week, while the market followed a stable to slightly upward trend. Although resin demand has not picked up strongly in the country, the possibility that China may be unable to import crude oil from Venezuela appears likely to push sellers’ costs higher, while gains on the Dalian exchange have helped improve sentiment to some extent.