[Recycled PE/PP Daily Review] Manufacturers' New Order Transactions Are Average, Recycling Enterprises Steady in Deliveries

1 Today's Summary

①、 On December 19th: The tense atmosphere between the US and Venezuela persists, and the unstable situation between Russia and Ukraine also brings potential supply risks, leading to an increase in international oil prices.

②. PE Market: Polyethylene Market Prices fell by 20-150 yuan/ton, with linear transaction prices at 6,230-6,500 yuan/ton.

3. PP Market: Futures opened lower and fluctuated downward, with most market quotations in the morning falling by 20-100 yuan/ton.

2. Spot Overview

Based on the Shandong and Hebei regions, today the price for recycled PE Hebei high-pressure white transparent first-grade granules is 5,700 RMB/ton, Juxian EVA granules are 5,400 RMB/ton, Shandong Wahaha white granules are 5,150 RMB/ton, and recycled PP white transparent high-quality first-grade granules are priced at 5,100 RMB/ton. Market transaction prices are hovering at low levels, with companies supplying downstream customer demand, and transaction performance is average.

Figure 1: Price Trend Chart for Domestic Recycled PE from 2024 to 2025 (CNY/ton)	Figure 2 Price Trend of Domestic Recycled PP for 2024-2025 (Yuan/Ton)
Data Source: Longzhong Information	Data Source: Longzhong Information

3. Production Dynamics

Figure 3 Trend of Domestic Recycled PE Capacity Utilization Rate	Figure 4 Trend of Domestic Recycled PP Capacity Utilization Rate
Data Source: Longzhong Information	Data Source: Longzhong Information

The supply of recycled plastics in the market is abundant during the week. Due to the price difference between new and old materials being lower than the normal level, the purchasing enthusiasm of downstream product enterprises is lacking, which restricts the operations of recycling companies. The capacity utilization rates for recycled PE and PP this period are 29.90% and 35.90%, respectively.

4Price prediction

The overall upstream and downstream of the recycled plastics market are showing a weak trend. Companies are mainly busy fulfilling the order demands of old customers; however, the transaction prices of downstream plastic product companies continue to decline, significantly reducing their willingness to purchase raw materials. Meanwhile, the prices of new materials are hovering at low levels, further suppressing the recycled plastics industry. In the short term, the sales situation of recycled plastics companies is not good, with finished product inventories gradually increasing, and the operating rates of some companies showing a downward trend. This has also somewhat dampened their enthusiasm for purchasing raw materials, causing raw material prices to run weakly. Currently, it is difficult to find strong favorable factors to support the market in the short term, and industry insiders lack confidence in the future market trend, expecting the market to continue hovering at low levels.

5Relevant product information

PE Market: Polyethylene Market Prices fell by 20-150 yuan/ton, with linear transaction prices at 6,230-6,500 yuan/ton. It is understood that the market has sufficient spot stock, and short-term supply pressure is difficult to alleviate. Downstream holds a wait-and-see attitude towards falling prices, with weak replenishment efforts, making it difficult for transactions to increase significantly. Price drops are predominant, with actual transaction negotiations taking place. Prices in the North China LL market fell by 120-150 yuan/ton, East China fell by 50-70 yuan/ton, and South China fell by 50-150 yuan/ton. It is expected that in the afternoon... Polyethylene Market Price drop.

PP Market Futures opened lower and fluctuated downward, with morning market quotations mostly dropping by 20-100 yuan/ton. As the year-end approaches, funds are being recovered, limiting the circulation of goods in the market. Merchants have lowered their expectations for future demand, and most quotations are trending downward. However, due to the fixed low-end prices on the cost side, there is limited room for concessions. Intense competition between supply and demand persists. The market is expected to remain weak and bearish in the near future. As of midday, the mainstream price for East China raffia is between 6,000-6,250 yuan/ton.