Türkiye’s import PPH market dips below new thresholds under mounting Korean pressure

Import homo PP prices have been gradually declining since the second half of February, when muted derivative demand started to outweigh the impact of restricted import resin volumes from regular suppliers. Falling upstream costs, ebbing buying interest amid deeper cash issues, and tariff uncertainties surrounding global markets led to additional drops in April PP offers following the Ramadan holiday.

In addition to these factors, competitive offers from South Korea, particularly for PP raffia, put pressure on Saudi and Russian suppliers, causing the downtrend to gain momentum and pulling the low ends of the market below critical thresholds this week.

According to the weekly average data from ChemOrbis, Saudi Arabian raffia and fibre prices hit their lowest levels since December 2023 this week.

Dutiable PP raffia breaks below $1000/ton CIF   

Last week, Saudi Arabian raffia offers were reported at $1010-1020/ton CIF, subject to 6.5% customs duty, but it was rumored that some deals took place below $1000/ton under special circumstances. This week, more prices have approached the lower end of the market, and the $1000/ton level has been widely confirmed.

A buyer said, “Last week, the price of Korean raffia dropped to a competitive level of around $1050/ton, putting heavy pressure on Saudi producers. Since the delivery times for both origins are almost equally long, Saudi producers responded to the pressure by making further discounts this week.”

Meanwhile, in the increasingly competitive environment, Russian raffia also broke below $1000/ton and started being offered at $990/ton.

An earlier agricultural frost that hit agricultural products and farmers in several parts of the country cast a pall on earlier hopes about a seasonal support among sack makers post-Eid holiday. This, coupled with lower crude oil futures compared to a month ago, kept converters on the sidelines.

Saudi fibre moves below $1050 CIF on pressure from a new plant

This week, an increasing number of buyers reported receiving Saudi PP fibre offers at $1030/ton CIF Türkiye, marking a further drop of $20/ton on the low end of the range, weekly. Although Korean offers were scarce and exerted less pressure compared to raffia, lower Russian prices and sluggish demand continued to weigh on the PP fibre market, as players noted. Adding to the scene were fresh materials from a newly launched plant in Saudi Arabia as they were priced at or close to the lower end of the overall import market.

Projections call for continued weakness in the near term

An unpromising demand outlook amid financial challenges at home, combined with steady to softer PP prices in Asia, continues to keep sentiment bearish in the short term. Rising capacity in China has already strained global markets, while players are closely watching whether South Korean PPH sellers will maintain aggressive offers to Türkiye amid recently lower freight rates. Meanwhile, the gap between Türkiye and China narrowed to $150/ton from $200/ton recorded in March, based on weekly averages from ChemOrbis.