[Recycled PE/PP Daily Review] Sideways Consolidation, Trading Driven by Just-in-Demand

1 Today's Summary

①、 On October 27, OPEC+ may accelerate the pace of increasing production, coupled with the market's view that the actual effect of Western sanctions on Russia is limited, leading to a drop in international oil prices.

PE Market:Polyethylene market price adjustment, linear transaction price 6950-7400 yuan/ton. 。

3. PP Market: Futures market fluctuated widely, with most morning market quotations oscillating within a range. 。

2 Spot Overview

Based on the Shandong and Hebei regions, the price for recycled PE Hebei high-pressure white transparent first-grade granules closed at 6,050 yuan/ton today, 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 remain stagnant, aligning with morning expectations. The recycled plastic market prices today remain mostly stable with minor adjustments, and transaction volumes are limited. Currently, the market price for new materials continues to stay at low levels, causing recycled enterprises to slightly loosen their quotations. Meanwhile, the increase in demand from downstream plastic product companies is below expectations, resulting in a sluggish market atmosphere and unsatisfactory transaction conditions.

Figure 1 2024-2025 Domestic Recycled PE Price Trend Chart (Yuan/Ton)	Figure 2 2024-2025 Domestic Recycled PP Price Trend Chart (Yuan/Ton)
Data Source: Longzhong Information	Data source: 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
Data source: Longzhong Information	Data Source: Longzhong Information

The situation of oversupply in the recycled plastics market continued throughout the week. Downstream product manufacturers have reduced their demand for recycled materials as the price gap between new and recycled materials continues to shrink, restricting the operation of recycling enterprises. In this period, the capacity utilization rate of the recycled PE market was 31.60%, and the recycled PP market was 28.16%. Although the industry's operation slightly declined, the overall supply in the industry did not change significantly. The supply-demand structure of oversupply cannot be altered in the short term.

4 Price Prediction

The Zainiu plastic market has shown a weak consolidation trend early on. Demand performance is average, with downstream maintaining a replenishment pace as needed, and market trading sentiment is mild. Affected by the fluctuations in the new material market, some suppliers have slightly offered concessions to sell, but the price downward space is limited due to cost support. Most industry players are taking a wait-and-see attitude, and operations tend to be cautious. It is expected that the market will continue to maintain a stable and slightly adjusted operational pattern in the short term, with a low possibility of major price fluctuations.

5 Relevant product information.

PE Market: Polyethylene market prices are being adjusted, with linear low-density polyethylene (LLDPE) transaction prices ranging from 6,950 to 7,400 RMB/ton. It is understood that the favorable macroeconomic news has gradually been absorbed, cost support is weakening, and downstream resistance to price increases is evident. The market is primarily focused on selling at prevailing prices, with narrow price adjustments. The prices in North China, East China, and South China markets are mainly undergoing slight adjustments. It is expected that the focus of polyethylene transaction prices will not change significantly in the afternoon.

PP Market: Futures market fluctuated widely, with most market quotations showing range-bound movements in the morning. By the end of the month, most intermediaries have completed their sales plans, easing sales pressure and primarily adjusting quotations to facilitate sales. The trading pace within the market was sluggish. As of midday, the mainstream price for Huadong raffia was between 6,560 and 6,650 yuan/ton.