[Recycled PE/PP Morning Brief] Selling Pressure Persists, Recycled Plastics Market Shows Range-Bound Trend

I. Points of Interest

1、 On August 26th, the market reassessed the progress of the Russia-Ukraine peace talks and believes that there is still an opportunity for easing geopolitical tensions, leading to a decline in international oil prices.

2、 Polyethylene:Polyethylene MarketPrices have risen, with linear transaction prices ranging from 7,250 to 7,650 yuan/ton. It is understood that the cost side provides certain support, maintaining a relatively strong sentiment. Some producers have partially raised ex-factory prices, but the spot market remains relatively ample, so price increases are cautious. Prices in the North China linear market have risen by 20-30 yuan/ton, in East China by 20-30 yuan/ton, and in the South China market by 50 yuan/ton. Polyethylene prices are expected to rise this afternoon.

3. Polypropylene: On the previous day, the futures market saw a slight increase, with the morning market offering a main fluctuation range of -20/+10 yuan/ton. As the end of the month approaches, there is little change in spot market offers, and intermediaries adjust their offers accordingly to sell. Demand is slowly recovering, but supply-side pressure is increasing, resulting in cautious market sentiment. As of midday, the mainstream price for East China wire drawing stands at 6920-7080 yuan/ton.

2.Price List

Unit: yuan/ton

3. Market Outlook

The recycled plastics market is experiencing a range-bound trend, with manufacturers actively supplying the demands of downstream product companies. However, short-term boosts in orders for product companies remain limited, continuing the trend of small-scale inquiries and purchases driven by immediate needs. The price of raw materials has not changed significantly, and the price gap between new and old materials remains low. Recycled enterprises still face pressure to offload their products, while inventory levels are rising, leading to some discounts in the market. It is expected that the market will trend towards stability with a slight weakness.