Türkiye’s polymer markets shoot up on supply crunch, soaring costs

March has turned into a turbulent month for Türkiye’s polymer markets, with supply disruptions triggering price hikes rarely seen in recent years. Rising tensions in the Middle East in the final days of last month not only pushed supply chains into turmoil but also drove production costs into one of their most volatile periods in years.

The closure of the Strait of Hormuz, widely regarded as a vital artery for the transportation of oil, gas, and polymers, has brought additional freight costs and a wave of force majeure announcements from producers in Asia and Europe as well as big global traders.

Surging feedstock costs have, in turn, led to sharp price increases across the PP, PVC, PE, PS, and PET markets.

While these developments have sparked panic among buyers and accelerated demand for prompt cargoes, converters appear likely to struggle to pass these steep increases on to finished product prices at the same pace.

With the Eid holiday approaching, buyers are expected to act cautiously. However, global price increases and uncertainties surrounding the war are likely to keep prices on an upward trajectory. Similarly, markets in China, Southeast Asia, Europe, and India are also facing notable hikes amid a supply chain shock and oil/gas shortages.

PP: Saudi port congestion pushes import offers up by three digits

The week following the outbreak of the war between the US, Israel, and Iran, players in Türkiye did not hear any import offers. Sellers had suspended new pricing in response to rapidly rising oil and freight markets. The primary PP supplier, Saudi Arabia, being at the heart of the conflict, primarily put shipments at risk, and the near-standstill traffic through the Strait of Hormuz added extra freight costs due to security concerns. Even transporting goods overland from Saudi factories to Jeddah became difficult as trucks were scarce, causing congestion in the region.

Some shipments from eastern Gulf ports like Dammam and Jebel Ali bound for destinations outside the Gulf Cooperation Council have been rerouted to Oman’s Sohar and Salalah ports or to the western port of Jeddah, extending lead times and lifting costs. According to suppliers, even the inland land transport from production plants to these ports adds up to $100 to total shipping costs. Moreover, Oman’s Salalah port has suspended operations due to attacks.

A source from a regional producer noted, “We applied $200–250/ton hikes to reflect the surcharges. Apart from Al Jubail, where shipments have been halted, Yanbu, Rabigh, and King Abdullah ports are also located in the affected area. Improving container availability and speeding up operations at these ports is essential. Otherwise, if producers cannot move cargo, they may have to halt their facilities.”.

This week, new homo PP offers for some origins have slowly surfaced, with increases ranging between $200–500/ton month-on-month, with PPH surpassing the $1400/ton CIF Türkiye threshold. It is also worth noting that these offers were only valid for a few days. The tight supply of import material has caused almost daily price rises in the domestic market. Local producer Petkim maintained controlled sales due to high demand for prompt cargo, while the raffia market surpassed the $1900/ton mark, including VAT, by mid-week.

PE: Import offers remain scarce amid worsening supply constraints

The PE market was also heavily impacted by these developments. Following a week in which no import offers were heard, by midweek, a leading Saudi producer announced March LLDPE C4 film and HDPE film offers with increases of $250–280/ton compared to February, while no offers from Qatar were available amid a force majeure.

Traders offering US-origin material either withdrew their prices from the market or implemented significant hikes, with LLDPE and HDPE film prices breaching the $1200/ton CIF Türkiye mark.

Buyers noted, “The fate of cargoes shipped from the Middle East remains uncertain, and sellers cannot provide a clear ETA for new shipments either. Some converters are actively searching for material, while others are taking a cautious approach and waiting until after the holiday to observe the market. Reflecting resin increases of this magnitude and speed into finished product prices at the same pace is extremely difficult.”.

PVC: Market witnesses wide price ranges as European sellers stay absent

PVC prices began to surface with sharp increases, as expected, amid an environment where geopolitical tensions have rapidly driven up costs. The hottest topic of the week has been the force majeure declarations and warning letters sent to customers by producers and traders, following feedstock supply disruptions in Asia and Europe after the closure of the Strait of Hormuz. Taiwan’s Formosa Plastics Corporation has joined the list of petrochemical producers declaring force majeure in response to the latest developments. Meanwhile, Brent crude oil futures, which had surged to $120/barrel earlier this week, retreated after certain remarks by Trump; however, they have remained volatile and moved back above $100/bbl at the time of writing.

In the import market, dutiable PVC K67 notionally surpassed $900/ton CIF Türkiye. US K67 was reported within an unusually wide range of $850–1000/ton, before the low end began to fade quickly, while prices at or near the upper end failed to attract buying interest despite deferred payment options. A trader reported selling some US material at $925/ton, noting that the market had become highly speculative amid unstable freight costs and a tightening supply outlook.

Meanwhile, rising Chinese export PVC prices, coupled with war-related surcharges across several shipping routes, prevented the emergence of clear CIF Türkiye-based price indications from the country this week.

European offers had yet to take shape at the time of writing. Force majeure news from INEOS Inovyn and QatarEnergy’s QEM, along with issues reported at some South Korean suppliers, continued to stir market jitters. Based on limited Egyptian and South Korean volumes held by traders, duty-free prices were assessed higher on the week, surpassing $1000/ton CIF on the high end.

Local PVC prices surged by about $200/ton on the week as distributors issued steep hikes for prompt cargoes, citing inflated replenishment costs and limited stocks at Petkim. The domestic producer has issued multiple price increases since the beginning of March, reflecting soaring upstream and logistics costs for both VCM and PVC.

PET: PX rally lifts local prices to a 3.5-year high

PET markets surged as the Middle East conflict disrupted global energy flows, freight routes, and upstream supply. The closure of the Strait of Hormuz pushed freight costs higher and limited feedstock availability for Asian producers. Early-week rallies in feedstocks—particularly paraxylene—added further cost pressure across the polyester chain. Volatility in oil, freight, and raw materials clouded pricing visibility, leaving suppliers cautious and buyers largely refraining from new commitments.

Most Asian suppliers suspended offers amid production and logistical disruptions. Supply concerns intensified after Japan’s ENEOS Corp declared force majeure on PX, citing Middle East-linked feedstock issues. Disruptions across the PET chain deepened global supply worries: Yisheng Petrochemical declared force majeure on shipments from its Yangpu and Dalian units, while China Resources declared FM. Indorama announced a force majeure in Europe due to Middle East-related disruptions and production issues. JBF Global Europe also applied a March PET surcharge, reflecting sharply rising costs.

Local prices were assessed sharply higher, to reach their highest level in about 3.5 years, according to ChemOrbis data. Early-week spot discussions appeared around $1350/ton, while later producer indications rose to $1380–1400/ton. A domestic producer even tested $1480/ton on Monday before revising the level to $1380/ton. Buyers largely continue to rely on stocks and delay new purchases until market direction becomes clearer.

PS: Rocketing styrene prices lead to notable domestic hikes

In response to mounting supply concerns in global feedstock markets, Türkiye’s PS market saw sharp increases this week, with domestic producers reporting month-over-month increases of around $250/ton. GPPS and HIPS prices neared critical thresholds of $1600/ton and $1700/ton, respectively, FCA Adana, not inc. VAT. Relentless gains in spot styrene markets across Europe and Asia played a key role in the latest pricing moves. Sources from local producers confirmed that they are revising their list prices almost daily due to instability in the upstream chain and logistical hurdles across the board.

In upstream, spot styrene prices in Europe surpassed $1400/ton while Asian figures neared $1200/ton at the time of writing. In the coming days, the duration of the Middle East conflict will be closely monitored. Meanwhile, converters remain concerned about their ability to pass the latest resin price increases on to finished product prices.