Recycled PE Daily Review: New Materials Rebound Slightly, Recycled PE Sales Continue to Face Pressure

1. Today's Summary

Today, offers in the domestic recycled PE market remained broadly stable, with no significant fluctuations in prices. Supportive factors from the external macro environment and the crude oil side remain in place. The market is watching the progress of subsequent U.S.-Iran talks, while a weaker U.S. dollar and a slight rise in international crude oil futures have driven a rebound in virgin PE prices. However, the increase in upstream virgin material prices has not been transmitted downstream to recycled products, and the price spread between virgin and recycled materials has deviated from a reasonable range. Recycled pellet producers are facing relatively high finished goods inventories and mounting shipment pressure. Downstream plastics processors show lukewarm purchasing interest, with transactions in the market limited to rigid-demand purchases from regular customers. Overall trading activity remains thin.

2. Spot Overview

Based on the mainstream recycled material distribution hubs in Hebei and Shandong, domestic recycled PE pellet quotations across all categories remained stable today. Mainstream quotations for Hebei LDPE white transparent grade-one pellets stood at RMB 5,950/tonne; recycled EVA pellets in Juxian were quoted at RMB 5,400/tonne; Shandong Wahaha grade-one pellets were quoted at RMB 5,150/tonne, with no price fluctuations across all specifications.

Compared with the spot prices of virgin PE, the futures market for virgin material rebounded significantly today. In the Linyi market, HDPE Dushanzi 5502 was quoted at RMB 7,200/ton (+100), LDPE Daqing 2426H at RMB 9,100/ton (+200), and LLDPE Daqing 7042 at RMB 7,200/ton (+100). Virgin materials generally saw price increases across regions, but recycled PE lacked the momentum to follow suit. The imbalance in the price spread made recycled material less cost-competitive, leaving no speculative restocking in the market; only existing long-term customers continued routine purchases.

3. Production Dynamics

Domestic recycled PE pelletizing plants are operating steadily, with no concentrated shutdowns for maintenance or widespread load increases or cuts. The industry generally adopts a low-inventory, make-to-order production model. Shipments of downstream finished products are sluggish, and most manufacturers strictly control finished goods inventories to avoid the risk of price declines. Upstream waste PE feedstock prices are moving sideways within a narrow range, with minimal fluctuations, providing no cost support for recycled pellets. Industry processing margins remain weak and fluctuate within a narrow range.

4. Market Sentiment

Bearish sentiment dominates the recycled PE industry chain. Upstream pelletizing producers are facing inventory overhang and are mainly operating by cutting prices to clear stocks and maintain long-standing customer channels; midstream traders remain cautious and on the sidelines, keeping no inventory and focusing on quick turnover; downstream film and injection-molded product manufacturers lack sufficient finished-product orders, strictly control raw material procurement costs, and only purchase on a rigid-demand basis while pressing for lower prices. Overall, bullish sentiment across the market remains weak.

5. Market Forecasting

The domestic recycled PE market is expected to maintain a weak and range-bound pattern in the short term. The recent rebound in virgin PE prices has limited sustainability and is unlikely to provide long-term support for recycled materials. The persistently unreasonable price spread between virgin and recycled materials continues to suppress market gains. In addition, multiple bearish factors are weighing on the market, including the lack of cost support for upstream scrap materials and weak downstream end-user demand, making it difficult for recycled PE plants to ease shipment pressure. It is expected that the market will remain weak and flat in the near term, with no clear rebound in sight.

(The above analysis is based on publicly available market data and is for reference only, not constituting investment advice.)