[repsyched pe/pp daily]: Recycled Firms' Supply Meets Orders, Downstream Manufacturers Hold a Wait-and-See Attitude

1 Today's summary

①、 Geopolitical uncertainty persists, US cold snap curbs. Crude oil International oil prices rose due to output, coupled with the slower-than-expected resumption of production in some oil fields in Kazakhstan.

② PE Market ： Polyethylene Market Price adjustments of RMB 20-100/ton, linear low density polyethylene (LLDPE) traded at RMB 6820-7200/ton.

③== PP Market: Futures prices fluctuated and rose, with some market quotations up 50-100 yuan/ton in the morning session. East China's mainstream wire drawing price is at RMB 6620-6750/ton.

2. Spot Market Overview

Table 1. Summary of Domestic Recycled PE/PP Prices (Unit: RMB/Ton)

Based on the Shandong and Hebei regions, today's market prices are as follows: recycled PE Hebei high-pressure white transparent grade-A granules closed at 5,300 RMB/ton; Juxian EVA granules closed at 5,400 RMB/ton; Shandong Wahaha white granules closed at 5,150 RMB/ton; and recycled PP white transparent premium grade-A granules closed at 4,850 RMB/ton. Overall market prices remained stable, with enterprises fulfilling existing orders while downstream buyers maintained a strong wait-and-see attitude.

Figure 1: Domestic Recycled PE Price Trend Chart for 2025-2026 (RMB/ton)	Figure 2 Price Trend of Domestic Recycled PP in 2025-2026 (Yuan/Ton)
Source: OilChem Premium	Data source: Longzhong Information

Production Dynamics

Figure 3 Trend Chart of Domestic Recycled PE Production Capacity Utilization Rate	Figure 4: Trend of Capacity Utilization Rate of Recycled PP in China
Data source: Longzhong Information	Data source: Longzhong Information

The supply in the recycled plastics market was abundant this week. Due to the price difference between new and recycled materials being lower than normal, downstream product manufacturers showed low enthusiasm for procurement, which constrained the operating rates of recycled enterprises. This period, the capacity utilization rates for recycled PE and PP markets were 28.00% and 34.00% respectively.

4. Price Prediction

The recycled plastic market continues to maintain a steady and stable trend, with companies primarily focusing on fulfilling orders for existing customers. Meanwhile, virgin material prices have experienced another slight increase. However, downstream plastic product manufacturers' willingness to purchase remains low, with most opting to deplete previously accumulated order inventories. Recently, due to the weather-related factor of decreasing temperatures, the volume of raw material collection has decreased, leading to the persistence of firm prices for some raw materials. This, in turn, has prompted a slight increase in quotations from some recycled pellet production companies. Nevertheless, due to the limited impact of demand-side stimulation, the market is expected to maintain a consolidation trend within a certain range.

5. Related Products

PE Market Polyethylene Market Price adjustments of 20-100 yuan/ton, with linear low-density polyethylene (LLDPE) transaction prices at 6820-7200 yuan/ton. It is understood that cost support has strengthened, market sentiment is acceptable, and some resources are tight. The market is mostly cautiously pushing up prices. Downstream factories are making some purchases, and there are some transactions at lower prices. LLDPE market prices in North China have risen by 20-100 yuan/ton, East China by 50-70 yuan/ton, and South China by 100 yuan/ton. The expectation is for further movement this afternoon. Polyethylene Market Prices mostly moved upwards.

PP Market Futures prices fluctuated higher, with some market quotes rising by 50-100 yuan/ton in the morning session. Stronger cost-side support and a positive sentiment led some distributors to tentatively raise their quotations. However, there was no significant improvement in downstream follow-through, and sluggish demand constrained market transaction volume. Supply and demand are in a state of contention, and the market is expected to consolidate in the near term. As of midday, mainstream East China drawing wire prices were in the range of 6620-6750 yuan/ton.