DÜNYA newspaper has highlighted the effects of rising petrochemical prices on the plastics sector in its headline. The published special report discusses the implications of price fluctuations in petrochemical products, which are the main raw materials for the plastics industry.
The article also features evaluations from our Chairman, Mr. Ömer Karadeniz of the Plastic Industrialists Federation (PLASFED). The full text of the news prepared by Nurdoğan A. Ergün is as follows:
The Turkish plastics industry is facing a major crisis due to fluctuations in petrochemical product prices, which are its main raw materials. Between July 2024 and July 2025, due to global economic conditions, fluctuations in energy costs, and hot wars, petrochemical prices have shown a quite complex trajectory, with some product groups indicating a downward trend in the last month.
However, in the last 6 months, there has been an increase of 4% to 20% in petrochemical products within the plastic raw material group. These increases are causing anxiety among plastic producers. Therefore, producers, 85% of whom depend on imports for raw materials and also source from Petkim domestically, are beginning to search for alternative sources against the recent price instability. Manufacturers, mostly made up of SMEs, are trying to fill the raw material gap through smaller importers. However, this raises concerns about quality and safety in the sector.
The Continuity of Production is at Risk
According to 2024 data, the Turkish plastic industry, which produces approximately 3,300 companies mostly comprising SMEs, reached a production value of 40.9 billion dollars. In a sector that closed the previous year with an 8% increase in production value, securing raw material supply is critically important for the continuity of production. Mr. Ömer Karadeniz, Chairman of PLASFED, stated that the sector's 85% dependence on imported raw materials makes them extremely vulnerable to fluctuations in global markets. Karadeniz mentioned that rising costs are upsetting the production plans and particularly pushing SMEs to seek alternative supply chains.
“The rise in petrochemical prices directly increases production costs for plastic manufacturers. However, the inability to reflect these increases at the same speed on product prices seriously narrows profit margins,” said Karadeniz, noting that this situation affects SMEs the most and that uncertainty in raw material supply threatens the continuity of production and long-term planning. According to the point highlighted by Karadeniz, the inability of companies to provide price assurances and to postpone investment decisions negatively impacts the international competitiveness of domestic producers.
Seeking Alternatives Creates Security Issues
Karadeniz reiterated that the recent price increases from Petkim and importers have significantly affected SMEs and forced them to seek alternative raw material sources, emphasizing that this carries serious risks.
Translated by Artificial Intelligence
