[Recycled PE/PP Daily Review] Virgin Material Prices Decline Across the Board, While Recycled Materials Remain in a Weak Stalemate

1. The U.S.-Iran peace agreement is about to be signed, expectations for navigation through the Strait of Hormuz are rising, international crude oil prices have fallen sharply, and the overall cost environment for chemicals has turned bearish.2. Virgin PE and PP futures and spot prices fell in tandem. Mainstream transactions for linear PE were at RMB 7,750–8,400/tonne, while PP prices generally fell by RMB 50–150/tonne in early trading, continuing to weigh on sentiment in the recycled materials market.3. Today, domestic recycled PE and recycled PP prices for all mainstream grades remained unchanged across the board. Market participants were mainly fulfilling existing orders from long-term customers, while bullish and bearish forces remained in a standoff, resulting in sluggish trading.

Today, mainstream recycled pellet prices in Shandong and Hebei all remained stable. For recycled PE, Hebei LDPE white transparent Grade A pellets were quoted at RMB 6,100/ton, Juxian EVA pellets at RMB 5,400/ton, and Shandong Wahaha Grade A pellets at RMB 5,150/ton. For recycled PP, Shandong white transparent Grade A pellets were quoted at RMB 6,200/ton, Hebei transparent pellets at RMB 5,750/ton, and Jiangsu white PPR regrind at RMB 5,100/ton. No price adjustments were made throughout the day.The prices of raw materials have declined across the board, with HDPE, LDPE, and LLDPE dropping by around 200 yuan in a single day, while PP raffia and injection molding grades have been reduced by 50-100 yuan. The cost fluctuations for recycled material manufacturers are limited, and their willingness to lower prices for sales is not strong. Downstream product companies are hesitant, preferring to buy on the rise rather than the fall, resulting in a strong wait-and-see sentiment, with only a small number of urgent orders being placed, making it difficult to increase actual transaction volume in the market.

PECost support has weakened significantly, with spot prices falling simultaneously across regions. In North China, LL dropped by RMB 200/ton, while East China and South China fell by RMB 100/ton. The mainstream price for linear products is RMB 7,750–8,400/ton. Traders are cutting prices to move inventory, but downstream buyers remain cautious and are waiting on the sidelines, resulting in sporadic transactions. The market is expected to remain weak in the short term. PPThe futures market fell sharply, and spot prices followed suit, dropping broadly by 50-150 yuan. In the off-season for demand, combined with weakening costs, traders proactively cut prices to boost sales. By midday, mainstream prices for draw-textured wire in East China were 9,500-9,650 yuan/ton, and the market is likely to remain weak in the near term.