Virgin Material Market Weakens, Recycled PP Remains Under Pressure at Low Levels

Today, China’s domestic recycled PP market remained under weak pressure, with prices easing slightly and trading activity in the market staying subdued. In terms of prices (ex-tax, ex-works), recycled PP transparent raffia-grade pellets in East China were quoted at RMB 7,820–7,920/mt, down RMB 40 on the day; copolymer high-impact recycled PP pellets were at RMB 8,350–8,450/mt, down RMB 35; and ordinary mixed-color injection-grade pellets were at RMB 7,400–7,500/mt, edging lower slightly. On the cost side, the main PP futures contract weakened during the day, dragging down virgin PP spot quotations. The price spread between virgin and recycled materials narrowed, reducing the substitution advantage of recycled material. Meanwhile, daily supplies of recovered plastic packaging and injection-molding scrap remained ample, feedstock prices stayed at low levels, and processing costs were stable.

On the supply and demand side, the average operating rate in the recycled PP industry was 42%, down slightly from the previous period. Small and medium-sized producers operated at low load, with no temporary shutdowns or maintenance. Supply of general recycled PP in the market was ample, while high-purity clean copolymer feedstock remained tight. Downstream sectors such as woven bags, automotive modification, and daily-use injection molding were in the off-season, with scarce orders and low operating rates, purchasing only on a need basis in small volumes. Overall market transactions were sluggish. To reduce inventories, holders slightly lowered prices, while downstream users had a strong bearish outlook and were extremely cautious about stockpiling.

PP futures fluctuated weakly, with no obvious positive support from the cost side. Looking ahead, weak virgin material prices combined with sluggish end-user demand are expected to keep recycled PP under pressure at low levels in the short term, trading in a narrow range.

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