[Recycled PVC Daily Review] Futures Edge Up Slightly, While Recycled Material Remains in a Narrow Weak Stalemate

The domestic recycled PVC market fluctuated narrowly with a slightly weaker trend, and regional quotations showed minor divergence. Mainstream prices for Hebei white uPVC standard water-washed crushed material were RMB 3,200–3,400/tonne; Jiangsu white transparent Grade I pellets were RMB 4,050–4,180/tonne, down slightly by RMB 50/tonne in a single day; grey pipe recycled pellets were RMB 3,030–3,180/tonne.

Cost-side support is limited. The recycling price of rigid PVC industrial offcuts remains stable at RMB 2,000–2,400/ton, while high temperatures have pushed up electricity costs for crushing and washing. Prices of stabilizers and other additives remain unchanged. In East China, the cash price of virgin PVC Type 5 is RMB 4,440/ton, and the price spread between virgin and recycled material is RMB 730–880/ton. The continued narrowing of this spread is weakening the substitution advantage of recycled material.

In terms of supply and demand as well as plant operations, the average operating rate of domestic recycled PVC processing plants was 52%, flat week on week. Small and medium-sized processors continued to run at low load due to insufficient orders, with no concentrated maintenance shutdowns. Domestic supplies of rigid PVC and pipe-grade scrap were ample, while imported waste PVC resources were relatively scarce, and high-end transparent crushed material was in tight supply. Downstream profiles and pipe materials were in the traditional off-season, with overall operating rates at 38.95%. Purchases were limited to rigid demand replenishment from existing customers, and bulk buying appetite remained weak.

Trading on the exchange was thin today, dominated by scattered small orders of 5–15 tonnes. Middlemen offered discounts to move goods, with room for negotiation at 80–130 yuan/tonne, while new inquiries remained limited. Market participants were cautious and slightly bearish. Finished goods inventories at producers continued to build slowly, and they prioritized destocking rather than holding firm on prices. Downstream product manufacturers maintained a strong wait-and-see attitude, waiting to restock in volume at lower prices.

The futures market showed a slight lift, with the PVC main contract closing at 4,529 yuan/ton on July 14, up 41 yuan intraday, a gain of 0.90%. This provided a modest boost to market sentiment in the short term, but did not lead to bulk spot transactions.

Market outlook: In the short term, the recycled PVC market is characterized by mixed bullish and bearish signals. The slight increase in futures prices provides limited support, but the off-season for downstream demand and the narrowing of the price gap between old and new materials suppress upward movement. Raw material costs limit significant declines, and in the next 1-3 days, prices are expected to remain stable within a narrow range, fluctuating within 50 yuan/ton, with little possibility of a significant increase in trading volume.

(The data in this article has been compiled from publicly available information and is for market reference only. It does not constitute any investment or trading advice.)