Recycled PVC Daily Review: New-Old Price Spread Continues to Narrow, Market Operates Weakly in a Narrow Range

Today, the domestic recycled PVC market was generally stable with slight declines, and regional quotations showed clear divergence. In Hebei, mainstream prices for national-standard washed and crushed white plastic-steel material were RMB 3,200-3,400/tonne; in Jiangsu, white transparent Grade-A pellets were RMB 4,100-4,200/tonne, with the daily average price down RMB 200/tonne; grey pipe recycled pellets were RMB 3,050-3,200/tonne. All prices are ex-tax, self-pickup prices.

On the cost side, weak support has formed: recycled prices for rigid PVC industrial offcuts remain stable, while energy costs for crushing and washing processing have edged up slightly, and prices of stabilizers and additives are unchanged. For virgin PVC, East China SG-5 cash prices are RMB 4,850–4,950/ton, and the price spread between virgin and recycled materials has narrowed to RMB 700–900/ton, weakening the cost-performance advantage of recycled material and suppressing procurement demand.

On the supply and operations side, the overall operating rate of recycling plants stood at 52%, down 4 percentage points from last week. Small and medium-sized processors reduced operating loads due to insufficient orders, with no concentrated maintenance shutdowns. Circulation of industrial plastic-steel and pipe scrap remained acceptable, but supplies of imported waste PVC were relatively scarce, and high-end transparent material was in tight supply. Downstream profile and pipe manufacturers remained in the off-season and continued to run at low rates, with overall operating rates only at 31.4%-38.48%, purchasing merely to meet the rigid needs of existing customers, while willingness to make bulk purchases stayed weak. Transactions were sluggish, with on-site negotiations mainly focused on small orders of 5-15 tons. Traders proactively offered discounts to move cargo, with room for negotiation at RMB 100-150/ton, while the increase in new inquiries was limited. Market participants remained cautious and pessimistic. Producers’ inventories continued to build up slowly, and they were eager to destock rather than hold firm on prices. Downstream buyers maintained a strong wait-and-see attitude, awaiting further price declines before making concentrated restocking purchases.

The futures market remained range-bound with a slightly weak tone. The PVC2609 contract edged lower intraday, weighing on spot market sentiment, and there was no speculative restocking activity in the market.

Market outlook: In the short term, recycled PVC lacks upward momentum. The combined bearish effects of weak virgin material prices, the off-season downstream demand, and narrowing price spreads are converging. Costs will only limit the downside to some extent. Prices are expected to maintain a narrow, gradual decline over the next 1–3 days, with the trading focus shifting down by RMB 50–100/ton, and little sign of a meaningful improvement in transactions.

(This article's data is compiled from publicly available information for market reference only and does not constitute any investment or trading advice.)