[Recycled PE/PP Daily Review] Limited Demand Boost, Few Transactions for Recycling Companies

1 Today’s Summary

①、 As the peak season for traditional fuel consumption in the United States comes to an end and Russia-Ukraine peace talks continue to make progress, international oil prices have fallen.

②. PE Market: Polyethylene market price adjustment, linear transaction price 7,160-7,650 RMB/ton.

3. PP Market: Futures opened low and fluctuated downward, with mainstream East China raffia at 6,820-7,000 yuan/ton.

2 Spot Overview

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

Based on the Shandong and Hebei regions, today the price of recycled PE Hebei high-pressure white transparent first-grade granules closed at 6,050 yuan/ton, Juxian EVA granules closed at 6,000 yuan/ton, Hebei Wahaha white granules closed at 5,500 yuan/ton, and recycled PP white transparent premium first-grade granules closed at 5,500 yuan/ton. The market prices are in a stalemate and are being sorted out, in line with the morning expectations. Today's recycled plastics market shows no significant changes, with companies primarily supplying existing customer orders, while downstream inquiries remain sluggish.

Figure 1 2024-2025 Annual Domestic Recycled PE Price Trend Chart (Yuan/Ton)	Figure 2 2024-2025 The domestic recycled PP price trend chart for the year (yuan/ton)
Data source: Longzhong Information	Data Source: Longzhong Information

3 Production Dynamics

Figure 3 Domestic Recycled PE Capacity Utilization Trend Chart	Figure 4 Domestic Recycled PP Capacity Utilization Trend Chart
Data Source: Longzhong Information	Data source: Longzhong Information

During the week, the supply of recycled plastics in the market showed no significant fluctuations. Companies completed a small number of just-needed orders, while downstream enterprises remained cautious in their purchasing. The support from favorable conditions for recycling manufacturers was limited, and operations remained stable and organized. The current capacity utilization rate of the recycled PE market is 26.60%, and the recycled PP market is at 27.10%. The industry's operations are largely stable with minor adjustments, and the increase in market supply is limited, with company inventories still at high levels.

4 Price Forecast

The recycled plastics market remains quiet in terms of news. At the beginning of the month, downstream plastic product manufacturers showed little interest in inquiries. Recycled enterprises are actively offering to sell, with some old customers making small necessary transactions at a discount. Currently, the price of raw materials is being quoted at a stable level. Due to high inventory levels, recycled enterprises are not keen on purchasing raw materials. There is little change in industry operations, with new material prices fluctuating within a range. Demand recovery is limited, and the market is expected to show a range-bound consolidation trend.

5 Related product information

PE Market: The polyethylene market prices have been adjusted, with linear transaction prices at 7160-7650 RMB/ton. It is understood that cost support is loosening, there is an expectation of increased market spot supply at the beginning of the month, and there is no macroeconomic boost. The market sentiment is pessimistic, leading to slight concessions for sales. Prices in the North China market have decreased by 20 RMB/ton, in East China by 50-100 RMB/ton, and in South China by 70 RMB/ton. It is expected that polyethylene prices will mainly decrease in the afternoon.

PP Market: Futures opened lower and fluctuated downward, with the morning market's main quotes showing a decline of 10-50 yuan/ton. At the beginning of the month, concerns about increased supply intensified, while demand followed slowly, making it difficult to support the current oversupply situation. Under the global economic downturn, both domestic demand and foreign trade are under pressure. In the short term, the market is fiercely contested around supply, demand, and costs, and it is expected that the weak downward trend in the market will be difficult to reverse in the near future. By midday, the mainstream price of East China wire drawing was between 6,820 and 7,000 yuan/ton.