[recycled pe/pp daily review] weak market demand and average sales for recycling enterprises

1 Today's Summary

①、 On August 1st: The market is focusing on the latest moves by OPEC+ to increase production, and as geopolitical tensions have not intensified, international oil prices have fallen.

②、 PE Market: The polyethylene market price has been adjusted, with linear transaction prices ranging from 7,160 to 7,480 yuan/ton.

3. PP Market: Futures opened lower and fluctuated downward. In the morning, market offers fell by 20-50 yuan/ton, with mainstream East China wire drawing at 7020-7180 yuan/ton.

2 Spot Overview

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

Based on the Shandong and Hebei regions, the 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 high-quality first-grade granules closed at 5,700 yuan/ton. The market prices are holding steady and aligning with the morning expectations. Today's new material prices have slightly weakened in quotations, with few new orders reported from recycling manufacturers. Downstream plastic products companies mainly purchase based on immediate needs, and the market shows little change.

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 Trend Chart
Data source: Longzhong Information	Source of data: Longzhong Information

During the week, there has been little change in the supply of the recycled plastics market. Although the cost aspect has seen some products weaken, the order-taking situation for recycling companies is generally average. The current capacity utilization rate for the recycled PE market is at 26.5%, while the recycled PP market is at 27.1%, indicating a slight increase in industry operations. As the end of the month approaches, downstream product companies still have a rigid demand for restocking purchases, which slightly stimulates recycling companies to increase operations, but the overall supply increment is limited.

4 Price Forecast

Again The overall change in the virgin plastic market is not significant. Recycling companies are actively offering quotes to sell, but the downstream purchasing sentiment is limited, mainly continuing with small inquiries for just-needed purchases. The prices of virgin material futures have weakened and declined, and the price gap between new and recycled materials has narrowed again, increasing the sales pressure on recycling companies. Currently, the inventory of recycled plastic finished products has risen, resulting in a slight decline in company operations. Manufacturers are slightly offering discounts to sell, and the market is expected to run steadily with a weak tendency.

5 Related product information

PE Market: The polyethylene market price has been adjusted, with linear transaction prices ranging from 7160 to 7480 yuan/ton. It is understood that support from the cost side has weakened, and there is no positive news to boost the market. At the beginning of the month, market resources have increased, and industry participants are primarily focused on actively selling, resulting in mostly slight price declines. The North China linear market price fell by 40-60 yuan/ton, the East China market price dropped by 20 yuan/ton, and the South China market decreased by 20-50 yuan/ton. It is expected that polyethylene prices will mainly adjust accordingly in the afternoon.

PP Market: Futures opened lower and fluctuated downwards, with morning market offers dropping by 20-50 yuan/ton. The sluggish demand side limits market transaction volume, and many traders are actively selling at a discount to avoid risks. Although there are frequent policy releases in the short term, downstream faces a dual dilemma of domestic demand and foreign trade, making substantial improvement difficult in the short term. Under the supply and demand pros and cons game, the market is expected to show a weak and slightly downward trend in the near future. As of midday, the mainstream price for East China wire drawing is between 7,020-7,180 yuan/ton.