SEKEYTE – H1 2026 Market Review & Our Position

The first half of 2026 brought significant volatility to the baler twine and net wrap industry, driven largely by geopolitical events and their impact on crude oil and raw material prices.

Market Overview: Cost-Driven Turbulence

As polypropylene (PP) and high-density polyethylene (HDPE) are the primary raw materials for our products, we felt the ripple effects of the oil price surge that began in late February. Following heightened Middle East tensions, crude oil jumped from around $69/bbl to over $113/bbl, and European PE resin prices soared by 70‑80% between February and April. PP prices hit five‑year highs, and production margins turned negative, with operating rates dropping to near 60%. This supply squeeze, combined with distributor hoarding, pushed up costs across the board.

Despite these headwinds, global demand for high‑quality twine and net wrap remained robust during the spring season. SEKEYTE successfully expanded its presence in key markets such as Russia and South America, thanks to our product reliability and strong customer relationships.

SEKEYTE’s Response: Stability Amid Uncertainty

We anticipated the market turbulence early. By building strategic raw material inventories ahead of the price spikes, we secured our production lines and maintained stable pricing for our customers throughout the first half. Our factory operated at full capacity, ensuring on‑time delivery when many competitors faced shortages.

Looking Ahead: Our Commitment and Strengths

As we enter the second half of 2026, geopolitical easing may bring some relief to oil prices, but new challenges loom—including a planned 5 million tonnes of additional PE capacity in China and persistently weak downstream demand. Nevertheless, SEKEYTE is well‑positioned:

• Cost & Supply Chain – Our inventory buffers and efficient procurement allow us to absorb residual cost pressures and protect our customers from sudden price hikes.

• Quality & Technology – With over 20 years of experience and an annual production capacity exceeding 20,000 tonnes, we deliver net wrap made from HDPE with low stretch and excellent UV resistance, and twine using advanced fibrillation technology for secure knots.

• Customer Focus – As one long‑term partner put it: “From the first bale to the last of the season, SEKEYTE delivers strength, consistency, and peace of mind.”

In a market that remains unpredictable, SEKEYTE is committed to being your most reliable partner. We will continue to provide stable quality, dependable supply, and responsive service—ensuring every harvest season is worry‑free, no matter what the markets bring.