[Daily Recycled PP Review] Trading Was Flat in the Off-Season of Demand, and Recycled PP Moved Within a Range

International crude oil prices declined, with WTI crude at USD 87.71 per barrel, down USD 2.32 per barrel; Brent crude at USD 90.38 per barrel, down USD 2.72 per barrel; domestic virgin PP market prices remained stable.2. Today, mainstream quotations for all types of domestic recycled PP remained unchanged. Tighter supply of upstream scrap materials provided support to the floor prices of recycled materials, but weak downstream demand limited room for price increases.

The mainstream ex-factory prices of recycled PP across various regions remain stable, tax excluded: for general mixed materials, Shandong white transparent first-grade crushed material is 4,900-5,100 yuan/ton, Jiangsu white transparent first-grade pellets are 6,000-6,400 yuan/ton, and Hebei blue-green PP crushed material is 3,000 yuan/ton; for raffia materials, Hebei white woven bag first-grade pellets are 3,700-3,800 yuan/ton, Shandong mixed-color woven bag pellets are 2,750-2,800 yuan/ton, and white ton bag first-grade pellets are 4,500-4,600 yuan/ton; for copolymer materials, Jiangsu white PPR crushed material is 5,000-5,100 yuan/ton, Shandong white washing machine crushed material is 5,200 yuan/ton, and black bumper crushed material is 2,900-3,000 yuan/ton. The market is currently in the traditional off-season for demand, with downstream product manufacturers seeing insufficient new orders and limited acceptance of high-priced supplies; purchasing is mainly driven by rigid demand and made on an as-needed basis. Virgin PP prices are fluctuating and holding steady, and the price gap between virgin and recycled materials still exists, so recycled materials retain certain cost advantages. Overall, the market is moving within a narrow range, and transactions are mainly negotiated based on actual orders.

Supply of recovered feedstock upstream is limited, and holders of high-quality material are reluctant to sell at low prices, providing bottom support for prices. However, downstream companies remain cautious about placing large orders, and the price spread between virgin and recycled material is approaching the edge of a reasonable range, leaving insufficient upward momentum. It is expected that China’s recycled PP market will remain range-bound and consolidative in the short term. Key factors to watch are the selling sentiment for recovered feedstock and actual procurement follow-through from end users.

 

Editor: Abby
(Material source: JLC Network)