Weak Demand Pulls Down Türkiye’s PP and PE Markets in August
After a sharp rally in Q1 2025, Türkiye’s polyolefin markets (PP and PE) shifted direction in April. Prices leveled off in May, then posted a mild rebound in June thanks to reduced inventories and several unplanned production outages. However, the picture changed again in Q3: demand slowed considerably, Middle East tensions eased, and by August the earlier supply worries had almost vanished with improved import availability. As a result, both PP and PE markets softened.
PP Market: Pressure from South Korean Cargoes
In August, homo PP raffia and fibre grades subject to 6.5% import duty dropped to their lowest levels since late 2023, according to ChemOrbis Price Index. Sluggish end-product exports to Europe during the long summer holiday, combined with the emergence of duty-free South Korean raffia offers below $1000/ton CIF, dampened demand for traditional origins.
Even though most buyers showed little appetite for these long-haul cargos, they leveraged their presence to bargain harder with Saudi and Russian suppliers. South Korean raffia shipments—likely based on bulk terms—were traded around $30/ton below the lowest Saudi offer. This came despite narrowing import price gaps between Türkiye and China and firmer spot propylene in Asia, highlighting how weak PP demand remains across the region.
Saudi PPBC injection cargoes also slipped to $1000/ton CIF, pushing the weekly average to the lowest since July 2023. Pressure mounted as Asian sellers sought to unload stocks, showing price flexibility even into Europe before holidays. The dynamic was reinforced by muted downstream demand and new Chinese capacity coming online.
PE Market: Buyers Push Back Against Rollovers
At the start of August, discussions in PE focused on new U.S. sanctions on certain companies, the tariff arrangement between the U.S. and EU, and a regulatory shift affecting Qatari-origin cargoes. While availability from Iran and Russia was watched closely, demand weakness remained the primary driver. Sellers from Iran and Russia had to cut prices to move volumes.
Middle Eastern suppliers initially attempted rollovers near $1000/ton CIF but quickly had to lower to $970/ton for HDPE and LLDPE C4 film after buyer resistance. Meanwhile, U.S. PE cargoes lacked competitiveness in Türkiye and were redirected to North Africa and Southeast Asia with aggressive discounts. The EU-U.S. tariff agreement allowed U.S. PE to flow into Europe, limiting the depth of price cuts elsewhere. Without these additional outlets, global markets might have faced sharper declines.
September Outlook: Can Polyolefin Sellers Break the Pattern?
Most players doubt a quick recovery in September. Still, some factors could lend support:
Europe’s return from holidays.
Post-monsoon demand in India.
China’s “Golden September – Silver October” season.
That said, softer crude oil, tight liquidity in Türkiye, and muted global consumption suggest PP and PE will struggle to gain momentum. Prices are expected to remain range-bound, with only short-lived upticks triggered by unexpected supply disruptions or geopolitical flare-ups.
Additional Insight for Vietnam’s Packaging Industry
Competitive impact: Softer PP and PE prices in Türkiye could influence resin benchmarks worldwide, lowering raw material costs for PP woven and BOPP laminated packaging producers in Vietnam.
Export opportunity: With Middle Eastern, Korean, and U.S. suppliers aggressively seeking outlets, Vietnamese converters should capitalize on cheaper resin inputs to sharpen price competitiveness in global packaging exports.
Target markets: As demand in Europe, India, and North Africa gradually recovers in Q4 2025, Vietnamese packaging exporters may find timely openings—especially since regional competitors are under pricing pressure.
Source: ChemOrbis – Earlier supply concerns eclipsed by low demand in Türkiye’s August PP, PE markets (August 15, 2025).
