[Recycled PE/PP Morning Alert] Market Conditions Remain in a Weak Consolidation Phase

I. Focus Points

1、 On June 15, the United States and Iran will formally sign a peace agreement in the near future, and the Strait of Hormuz will gradually reopen, leading to a decline in international oil prices.

2 Polyethylene:Polyethylene market prices decline. Linear transaction price: 7950-8500 yuan/ ton, It is understood that ， The significant easing of the Middle East conflict has greatly weakened cost-side support, dampening market confidence. Some producers have lowered ex-factory prices, while market participants are actively cutting prices to sell. Downstream buyers remain largely on the sidelines, making only limited low-price replenishment purchases. 。 Hua NorthLL market prices have dropped by 100-150. yuan /ton ， East ChinaDown 50-100 Yuan /ton and South ChinaDrop 50-100 Yuan /ton Polyethylene market prices are expected to mainly decline in the afternoon.

3、 Polypropylene Alkene:Futures opened lower and continued to decline, with market prices falling by 50–130 yuan/ton in the morning. Cost support weakened, coupled with sluggish follow-up on the demand side, leading to increased cautious bearish sentiment among traders. As downstream factories saw shrinking profit margins, they remained cautious and on the sidelines, putting pressure on market sales progress. Overall, the short-term market is expected to mainly trend downward. As of midday, mainstream raffia prices in East China were at 9,650-9,800 yuan/ton.

II. Market Price

Unit: yuan/ton

III. Market Outlook

The overall market for recycled plastics is sluggish, while virgin raw materials maintain a narrow range of fluctuations. The downstream product manufacturers have insufficient order increases, with operating loads at a low level and a lack of enthusiasm for raw material procurement. New orders for recycled materials are not being actively followed up. The warming temperatures have led to a slight increase in some raw material prices, but companies in the industry are facing serious finished product inventory accumulation. Production has been slightly adjusted downward, and there are no favorable factors in the market to provide support, resulting in a weak consolidation trend.