[Recycled PE/PP Daily Review] Recycled Enterprises Actively Supply Order Demand, Just-in-Need Small Orders Transacted at Lower Prices

1 Today's Summary

①、 On September 9, Israel attacked Hamas leaders within Qatar, increasing potential supply risks from the Israel-Palestine conflict, leading to a rise in international oil prices.

②. PE Market: The polyethylene market prices have increased, with linear transaction prices ranging from 7,150 to 7,600 yuan/ton.

3. PP Market: Futures opened higher but fluctuated downwards, with the market reporting a fluctuation range of -30/50 yuan/ton in the morning.

2 Spot Overview

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

Based on Shandong and Hebei regions, today the price of recycled PE high-pressure white transparent first-grade granules in Hebei closed at 6,050 yuan/ton, Juxian EVA granules closed at 6,000 yuan/ton, Wahaha white granules in Hebei closed at 5,500 yuan/ton, and recycled PP white transparent premium first-grade granules closed at 5,500 yuan/ton. The market prices remained stable and consolidated, in line with early expectations. The recycled plastics market saw moderate trading activity today, with downstream product manufacturers actively inquiring and placing orders. Suppliers met the demand, and product prices remained stable.

Figure 1 2024-2025 Domestic Annual Recycled PE Price Trend Chart (RMB/ton)	Figure 2 2024-2025 Domestic Recycled PP Price Trend Chart (Yuan/ton)
Data source: Longzhong Information	Source of data: Longzhong Information

3 Production Dynamics

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

During the week, the supply of recycled plastics increased, with new orders from enterprises rebounding and downstream product manufacturers actively placing orders. The operating rates of recycling enterprises rose slightly. In this period, the capacity utilization rate of the recycled PE market was 32.20%, and that of the recycled PP market was 28.30%. The industry's operating rate showed a slight recovery, and market supply increased.

4 Price Prediction

The recycled plastics market is experiencing a pattern of fluctuating adjustments, with the core issue remaining the fundamentals of supply and demand. In the short term, a slight boost in downstream orders is providing some support, while regional differences in supply and demand for recycled pellets are creating structural opportunities in the market. Currently, producers’ profitability is still below expectations, but order placements and production rates are stabilizing. The market price is expected to continue a range-bound consolidation trend.

5 Related Product Information

PE Market: The polyethylene market price has increased, with linear polyethylene transaction prices at 7,150–7,600 yuan/ton. It is understood that the macro environment has turned slightly positive, cost support continues to strengthen, and low-priced transactions have improved. The market has generally seen slight price increases, but downstream buyers are resisting the price hikes, resulting in slower transactions after the increase. In North China, prices have risen by 20–30 yuan/ton; in East China, prices have also gone up by 20–30 yuan/ton; while prices in South China remain stable. It is expected that polyethylene prices will continue to be actively increased in the afternoon.

PP Market: Futures opened higher but trended downward, with the morning market quotations maintaining a fluctuation range of -30/50 yuan/ton. The Federal Reserve's interest rate cut expectations have activated market enthusiasm, while intensive domestic maintenance has alleviated market supply and demand pressures. In the short term, market estimates for future demand are weak due to supply and demand pressures, and the market is cautiously selling at a discount. The short-term market is characterized by a tug-of-war between supply, demand, and costs, and it is expected that the market will mainly experience weak fluctuations within a weak range in the near term. As of midday, the mainstream price for East China wire drawing is between 6,780-6,950 yuan/ton.