Peak Season Not Booming: Recycled PE Price Increase Faces Obstacles

[Introduction]: Recently, domestic regeneration PE The overall market performance remains stable, with prices, capacity utilization rates, and theoretical profits all staying at low levels. This situation is mainly constrained by the narrowing price difference between new and old materials, as well as weak demand. Even under such circumstances… “ Golden September and Silver October ” As the traditional peak season approaches, the supply-demand imbalance in the market is expected to remain difficult to resolve, and the market is likely to maintain a weak and consolidative trend going forward.

1. The market transactions remain stable. The price spread continues to narrow.

Figure 1 Weekly Major Market Price Trend Chart of Recycled PE in China in 2025 (Unit: Yuan/Ton)	Figure 2 Trend Chart of Price Difference Between New and Recycled PE in 2025 (Unit: RMB/ton)
Data Source: Longzhong Information	Data source: Longzhong Information

9 Since the beginning of the month, Domestic regeneration PE The overall market price remains stable. Shandong region EVA The granule price remains at 6000-6200 Yuan / Ton, high-pressure white transparent first-grade granules in Hebei region 6000-6100 Yuan / Ton.

The recycling market has low trading activity, with companies primarily fulfilling orders from existing customers. The price of new materials remains low, and the price difference between new and recycled materials is relatively small. PE The transaction prices lack upward momentum. Downstream product enterprises continue to adopt a demand-driven purchasing strategy with a cautious stocking mentality. The weak balance maintained between supply and demand on both ends is the main factor restricting price fluctuations.

The current price difference between new and old materials continues to remain 680-750 Yuan / The narrow fluctuation range of tons is significantly lower than the industry norm. This price spread structure leads downstream companies to prefer purchasing new materials, thereby suppressing the demand for recycled materials. PE The release of demand. The weak performance on the demand side has further weakened the price support in the recycled materials market, limiting the short-term upward potential of prices. Market participants generally expect that before the price gap between new and recycled materials returns to a reasonable range, recycled... PE Prices may continue to consolidate at low levels.

2. Small increase in demand   Increase in capacity utilization

9 Since the beginning of the month, regenerate PE Industry capacity utilization rate revised upward, as of 9 Moon 4 The industry's capacity utilization rate reached. 31.11% Month-on-month increase 4.6% Currently, the downstream manufacturing industry has entered the traditional peak season, leading to an increased operating sentiment among recycling enterprises. Coupled with a slight warming of downstream demand, the operating sentiment of enterprises is relatively strong. However, the order growth of downstream manufacturing enterprises is below expectations, resulting in a cautious purchasing sentiment and limited support from the demand side. It is expected that the short-term capacity utilization rate will continue to remain stable.

3. Theoretical profit fluctuations are limited

9 Since the beginning of the month, regeneration PE Industry theoretical profits remain relatively stable, centered around 200 Yuan / The tonnage has not shown significant changes. Supported by the prices in the raw material market, the current prices in the recycled materials market have remained stable, providing some support for profit margins. However, orders from downstream product companies have not met expectations, and downstream procurement and stocking attitudes are cautious, putting pressure on the demand for recycled materials. Overall, under the dual pressure of weak demand and cost support, the downstream tends to focus on practical negotiation, and it is expected that recycled... PE Theoretical profits are likely to remain in a state of marginal gains, with little expectation of growth in the short term.

4. Market Outlook

Enter 9 Month, rebirth PE The market is expected to see a slight increase in demand. On the supply side, the high-temperature weather has eased, but there is a slight increase in the reclaimed raw material market, and the operating sentiment of recycling enterprises has improved. However, the order growth from downstream product companies is limited, and their purchasing strategies remain cautious. Additionally, the continuous narrow fluctuation in the price gap between new and recycled materials affects the downstream recycling material procurement intention, which remains low. PE Demand is unlikely to see a strong increase. In summary, 9 Moon Rebirth PE The market supply and demand imbalance is unlikely to ease, and prices lack upward momentum, making it difficult to change the weak consolidation trend. Enterprises need to closely monitor changes in downstream demand and the price difference between new and old materials, and adjust their production and sales strategies flexibly.