[Recycled PE/PP Weekly Review] Demand Slightly Weakens, Recycled Enterprises' New Order Transactions Are Poor

1. Market Analysis for This Week

Figure 1 Price Trend Chart of China's Recycled PE Major Market in 2025 (Unit: Yuan/Ton)	Figure 2 2025 China's Recycled PP Main Market Price Trend Chart (Unit: Yuan/Ton)
Data Source: Longzhong Information	Data source: Longzhong Information

In this period, the prices in the recycled plastics market have not changed significantly, with companies maintaining stable quotations primarily for supplying orders from long-term customers. The recycling manufacturers are producing and selling simultaneously, with ample inventory on site and abundant spot supply. However, as the peak season atmosphere in the downstream sector fades and new order growth weakens, coupled with the continuous decline in new material prices and the narrowing price gap between new and old materials, negative factors are leading to more cautious purchasing of recycled materials by the end-users, hindering the sales of recycled pellets. At the same time, the high cost and difficulty of recycling at packaging stations cause raw material merchants to prefer selling at lower prices, with raw material prices stably supporting recycled material prices. Overall, under the influence of negative factors, the recycled plastics market remains stable this week, with transaction prices needing negotiation between buyers and sellers based on specific goods. Currently, the mainstream average price for recycled PE in the market is 6,050 yuan/ton for Hebei high-pressure white transparent first-grade pellets, remaining stable compared to last week's price. The mainstream price for recycled PP in the Shandong market is 5,450 yuan/ton for high-quality white transparent first-grade pellets, also stable compared to last week's price.

2. Downstream Dynamics

According to a survey by Longzhong Information: This week, the capacity utilization rate of polyethylene downstream industries decreased by 0.36% compared to last week. The capacity utilization rate of agricultural film remained stable at 0.00% compared to last week, pipe materials remained stable at 0.00%, hollow products decreased by 0.44%, injection molding decreased by 0.62%, packaging film decreased by 0.37%, and drawing materials decreased by 1.11%.

This week, the average operating rate of domestic polypropylene downstream industries (including plastic weaving, injection molding, BOPP, PP pipes, PP non-woven fabrics, CPP, PP transparent materials, and modified PP, totaling eight downstream industries) increased by 0.14 percentage points to 53.28%. The demand for packaging related to food, fruits and vegetables, clothing, and dairy products slightly increased due to the boost from the Double Eleven e-commerce festival, driving order transactions in the BOPP industry. On the other hand, as the weather cools, the demand for medical and hygiene non-woven fabric products, such as masks and diapers, has risen, with the non-woven fabric industry's operating rate increasing by 0.63% from the previous period. Supported by national subsidies, holiday promotions, and innovative marketing policies, the sales of automobiles and home appliances have grown year-on-year. However, traditional PP product sectors showed weak order performance; although the plastic weaving industry benefited from packaging demand for staple food products such as rice, flour, grain, and oil, there was a lack of large-scale centralized procurement, resulting in only minor fluctuations in orders and a steady decline in industry operating rates.

Next week Market Forecast

The recycled plastic market is expected to continue its weak and stable consolidation trend in the next period, with a predominant weak trading atmosphere in the market. Currently, the domestic recycled plastic industry is struggling to find favorable support, as the ample supply of new material prices leads to a gradual downturn in product market prices, placing pressure on the sales of recycled pellets. Downstream product demand orders and prices lack support, resulting in a tight sentiment towards raw material procurement. The recycled plastic pellet market is showing a demand-driven downward trend, and the market is expected to remain weak in the short term. Price and profit margin recovery will depend on a rebound in demand and stabilization of new material prices. Expectations for demand purchasing from end-users are unlikely to improve significantly, with limited order growth for downstream product enterprises and a continuation of the just-in-need purchasing model.