Recycled PE/PP Morning Update: Market Expected to Trend Weak Within Range

1. Focus Points

1、 8/18: The market is focused on the outcome of the meeting between US and Ukrainian leaders, with concerns about persistent uncertainties in the geopolitical situation, leading to a rise in international oil prices.

2、 Polyethylene: On the previous day, the polyethylene market prices were adjusted, with linear transaction prices between 7,220-7,600 yuan/ton. It is understood that there is no macroeconomic boost, the cost support is weakening, and the market resources are relatively sufficient. Sellers are actively selling, and prices mostly saw a slight decline. In North China, linear market prices adjusted by 10-20 yuan/ton, while in East and South China, market prices remained stable. It is expected that polyethylene prices will mainly adjust in the afternoon. 。

3. Polypropylene: The previous trading day saw futures open lower and fluctuate downward, with mainstream market offers in the morning generally falling by 10-50 yuan/ton. Weak demand valuations, combined with expectations of increased supply, have led the market to cautiously avoid risks, focusing on low-inventory sales. Although there have been frequent favorable policy signals in the short term, the issue of weak orders on the demand side remains difficult to address effectively. Expectations of easing costs have further increased selling pressure in the market. It is expected that the recent bearish and volatile market situation will be difficult to change. As of midday, mainstream raffia prices in East China were at 6,980-7,150 yuan/ton.

2.Price List Form

Unit: RMB/ton

3. Market Outlook

The recycled plastic market news is relatively quiet, with few reports of new orders from enterprises. Manufacturers are actively supplying the demands of their order clients, while downstream buyers maintain a strong wait-and-see attitude. The off-season demand is unlikely to be supported by favorable conditions, and the prices of new materials continue to hover at low levels, putting some pressure on the sales of recycled plastic companies. Some recycled enterprises are experiencing higher finished product inventories and are making slight concessions on actual orders to facilitate transactions. The market is expected to exhibit a weak trend within a certain range.