[recycled pp daily review] new material strengthens locally, recycled pp demand remains stable

1. Today's Summary

Today, domestic recycled PP market prices remained broadly stable, with sluggish trading activity in the market. Supported by geopolitical tensions and a weaker U.S. dollar, external crude oil futures edged higher, while virgin PP futures opened lower and then fluctuated upward. In the morning, prices for some virgin material grades rose by RMB 30–140/mt. However, the slight strengthening in virgin materials failed to drive up recycled PP prices, as downstream demand from injection molding and pipe end-users remained weak. Recycled PP producers faced slow shipments, and with both supply and demand in the industry on the weak side, the market was mainly driven by fixed orders from regular customers, with muted bullish and bearish competition.

2. Spot Market Overview

Based on the main distribution centers in Shandong, Hebei, and Jiangsu, today’s spot prices for all categories of recycled PP remained stable. In Shandong, premium first-grade white transparent pellets were priced at RMB 6,050/ton; in Hebei, white transparent premium pellets were priced at RMB 5,600/ton; and in Jiangsu, white PPR crushed material was priced at RMB 4,950/ton, with no price changes throughout the day.

Compared with the virgin PP spot market, virgin PP prices fluctuated upward today. Linyi T30S (North China Petrochemical) was quoted at RMB 7,800/mt (+50); mainstream offers for Zibo EPS30R and Tianjin PPH-T03 remained unchanged. The strengthening futures market boosted sentiment in the virgin material market, but downstream demand for recycled PP remained weak, and end-users found it difficult to accept high-priced feedstock. As a result, recycled PP had no room for price adjustments, with very few sporadic new orders in the market.

3. Production Dynamics

The domestic recycled PP pelletizing and crushing processing plants maintain a stable production rhythm, with no concentrated maintenance shutdowns. The industry primarily produces based on demand, but is constrained by insufficient orders for downstream products, leading companies to actively control finished product inventory to avoid risks. The prices of upstream recycled PP raw materials remain stable, with no significant changes on the cost side. The processing profits in the recycled PP industry remain within a steady range, with no large fluctuations in profits or losses.

4. Market Sentiment

The overall sentiment in the recycled PP industry chain is neutral to weak. Upstream production enterprises have moderate inventory pressure and prioritize maintaining prices to ensure shipments to existing customers. Middlemen mainly adopt a wait-and-see approach and do not stock up in anticipation of price increases. Downstream injection molding and modified product manufacturers have weak finished product orders, and their purchasing is conservative, only acquiring what is necessary while resisting high-priced sources. There is insufficient momentum for a unilateral price increase across the market.

5. Market Forecasting

The domestic recycled PP market is expected to fluctuate weakly in the short term. Virgin PP may remain on the stronger side in the near term, but there is an expectation of a pullback over the longer run, providing only limited support. Weak downstream end-user demand remains the key constraining factor. The price spread between virgin and recycled materials has deviated from a reasonable range, creating greater resistance to the circulation of recycled materials. Overall, the pattern of strong supply and weak demand remains unchanged, shipment pressure on recyclers continues, and the market is unlikely to improve in the short term.

(The above analysis is based on publicly available market data for reference only and does not constitute investment advice.)