European polymer market participants are starting to see price increases communicated by suppliers as a result of the conflict in the Middle East.
European customers are being approached by some suppliers with initial price increases of €60-200/t, although the situation is dynamic with many evaluating the effect of the conflict and their approach. This reflects expectations of higher feedstock costs and tighter supply if imports from the Middle East are disrupted by shipping constraints, or the risk of production issues in the Middle East.
Many containership owners have suspended operations in the strait of Hormuz, including Maersk and Hapag Lloyd. CMA CGM has not announced any suspensions but has implemented an "emergency conflict surcharge" of $3,000/feu ($121/t) on all loadings from ports in the Mideast Gulf and Red Sea regions.
Freightos-derived Jebel Ali-Antwerp polymer freight rates were $51-60/t last week, prior to the US-Israeli airstrikes on Iran. Operations at UAE's Jebel Ali port, which handles 65pc of all GCC polymer exports, were suspended on 1 March as debris sparked a fire at one of the berths.
Polymer shipments from the Middle East are now predominantly being offered for loadings from Jeddah and other Saudi ports on the Red Sea. But these will come with higher freight costs, and volumes are likely to be lower as many Middle Eastern producers have suspended offers.
Lead times may increase, and additional trucking costs inland, from the Mideast Gulf coast to Red Sea coast, will increase logistics costs for many producers.
European countries imported 3.1mn t of polyethylene from the Middle East in 2025, or 40pc of all imports. This includes Turkey, which imported 1.1mn t.
For polypropylene Europe imported 2.4mn t in 2025, 55pc of total imports, of which 1.3mn t was for Turkey.
The flexibility of European producers to increase operating rates will be tested if there is a sudden increase in demand. European producers have been operating at low rates and margins are thin.
