Recycled PE/PP Daily: Weak Downstream Product Demand Leads to Flat Recycled Plastic Shipments

1 Today's Summary

①、 Jan 19: Geopolitical tensions in Iran and other regions eased, reducing potential supply risks, and international oil prices fell.

② PE Market: Polyethylene market prices decreased by 50-250 yuan/ton, with linear low-density polyethylene (LLDPE) trading at 6530-6900 yuan/ton.

③, PP Market: Futures opened lower and fluctuated, with most market quotes falling by 20-50 yuan/ton in the morning.

2. Spot Market Overview

Based on the Shandong and Hebei regions, today's market prices for recycled PE white transparent grade-1 granules in Hebei closed at 5,200 RMB/ton, EVA granules in Juxian closed at 5,400 RMB/ton, and Wahaha white granules in Shandong closed at 5,150 RMB/ton. Recycled PP white transparent premium grade-1 granules closed at 4,850 RMB/ton. Overall market prices remained stable; enterprises are fulfilling existing orders, while downstream buyers maintain a strong wait-and-see attitude.

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

3. Production Status

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 recycled plastic market supply was ample during the week. Due to the price difference between virgin and recycled materials being lower than normal, downstream product manufacturers showed weak purchasing enthusiasm, hindering the operating rates of recycling companies. The capacity utilization rates of the recycled PE and PP markets this period were 28.00% and 34.00%, respectively.

4. Price Prediction

The recycled plastics market struggles to find positive support, with new material prices facing resistance in their upward push and subsequently weakening, which somewhat hinders recycled plastic enterprises' shipments. In the short term, downstream plastic product manufacturers continue to operate at low capacity, and their raw material procurement sentiment remains weak, with most adopting a wait-and-see approach, mainly inquiring about market demand with small orders. Raw material prices are trending stable, having limited impact on the recycled plastics market. Recycled plastic enterprises still face inventory pressure, and the market is expected to continue to linger in a low position.

5. Related Products

PE Market Polyethylene market prices fell by 50-250 yuan/ton, with LLDPE trading at 6530-6900 yuan/ton. It is understood that more planned units are starting up recently, and supply is expected to increase. Market sentiment remains weak. Some downstream users are replenishing inventories on dips, but transaction volume is difficult to increase. North China LLDPE market prices fell by 70-170 yuan/ton, East China fell by 80-100 yuan/ton, and South China fell by 50-100 yuan/ton. Polyethylene market prices are expected to decline this afternoon.

PP Market Futures opened lower and fluctuated, with most market quotations falling by 20-50 yuan/ton in the morning. However, downstream demand did not show significant improvement, putting pressure on market participants' sentiment. Traders were cautious and willing to offer discounts to sell, leading to a slight downward shift in spot prices. Under the interplay of supply and demand costs, the market is expected to remain in a volatile state in the near future. As of midday, mainstream prices for wire drawing in East China ranged from 6330-6500 yuan/ton.