[Recycled PE/PP Daily Review] Recycled Enterprises Offer Sporadic Price Increases, Downstream Inquiries for Small Orders Based on Rigid Demand

1 Today's Summary

①、 1/22: Positive signals emerged again from the Russia-Ukraine peace talks, easing market concerns about potential supply risks, and international oil prices fell.

②== PE Market : Polyethylene market prices rose by 30-150 yuan/ton, with LLDPE trading at 6720-7000 yuan/ton.

3. PP Market: Futures market continued its upward trend, with spot polypropylene prices rising today as capital market support boosted sentiment.

2. Spot Overview

Based on Shandong and Hebei regions, today's recycled PE high-pressure white transparent grade 1 pellets closed at 5300 yuan/ton, Juxian EVA pellets closed at 5400 yuan/ton, Shandong Wahaha white pellets closed at 5150 yuan/ton, and recycled PP white transparent premium grade 1 pellets closed at 4850 yuan/ton. The overall market prices remained largely unchanged, with enterprises supplying according to orders and downstream customers maintaining a strong wait-and-see attitude.

Figure 1: Domestic Recycled PE Price Trend Chart (RMB/Ton) for 2025-2026	Figure 2: Domestic Recycled PP Price Trend in 2025-2026 (RMB/ton)
Data source: Longzhong Information	Data source: Longzhong Information

Production Dynamics

Figure 3 Trends in Domestic Recycled PE Capacity Utilization	Figure 4 Trend of Domestic Recycled PP Capacity Utilization
Data source: Longzhong Information	Data source: Longzhong Information

The recycled plastic market saw ample supply this week. Due to the price difference between new and recycled materials being lower than normal, downstream product manufacturers showed limited purchasing enthusiasm, which constrained the operating rates of recycling enterprises. This period, the capacity utilization rates for recycled PE and PP markets were 28.00% and 34.00%, respectively.

4. Price Prediction

In some regions, recycled plastic market enterprises are slightly pushing up their offers, while the prices of new materials are further driven up by raw materials and futures market increases. This has stimulated a slight improvement in the inquiry atmosphere for downstream product manufacturers. However, as the Spring Festival holiday approaches, leading enterprises still have orders and are making necessary replenishments, but small and medium-sized enterprises' operating rates remain below expectations, with weaker purchasing willingness. This provides limited support for the raw material market, thus it is expected that the market will continue to trend within a range in the later period.

5. Related Products

PE Market: Polyethylene market prices rose by 30-150 yuan/ton, with linear transaction prices ranging from 6720-7000 yuan/ton. It is understood that macroeconomic factors have continuously boosted market sentiment, leading to a strong market mood and active price increases. However, downstream buyers are resisting price hikes, and a wait-and-see attitude has intensified, weakening overall transactions. The LL market in North China saw prices increase by 50-120 yuan/ton, East China by 50-100 yuan/ton, and South China by 100 yuan/ton. Prices in the polyethylene market are expected to continue their upward trend this afternoon.

PP Market: Futures market continued to rise, and today's polypropylene spot prices increased. Capital market boosted sentiment recovery, and market merchants locked in profits. Spot price center of gravity moved upward, market transactions were general, and actual transactions were negotiated. As of midday, the mainstream price of raffia in East China was 6400-6520 yuan/ton.