Recycled PE/PP Morning Update: Recycled Plastic Market Remains Weak and Stable, Actual Transactions Continue to Be Negotiated

I. Points of Attention

1、 On September 22, concerns in the market about OPEC+ increasing production leading to an oversupply overshadowed the impact of geopolitical instability, resulting in a decline in international oil prices.

2、 Polyethylene: The polyethylene market has seen price adjustments, with linear transaction prices ranging from 7,100 to 7,600 yuan/ton. It is understood that there are few favorable factors to boost the market, and there is a certain pressure to sell. The cost support is weakening, leading to more concessions in sales, with actual transaction discussions ongoing. Prices in the North China market have dropped by 20-30 yuan/ton, in the East China market by 20-30 yuan/ton, and in the South China market by 20 yuan/ton. It is expected that polyethylene prices will mainly decline in the afternoon.

Polypropylene: Futures opened flat and fluctuated slightly downward, with morning market quotations down by 20-30 yuan/ton. The persistent weakness on the demand side, coupled with a significant increase on the supply side, has further escalated market supply and demand pressures. As the end of the month approaches, the market is concerned about inventory pressure during the National Day holiday and many are actively reducing inventories to mitigate risk. In the short term, supply, demand, and cost are in a state of contention, and the market is expected to experience weak bearish fluctuations in the near future. By midday, the mainstream price of East China filament stood at 6720-6900 yuan/ton.

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3. Market Outlook

The recycled plastics market remains weak and stable, with actual transactions continuing to be negotiated. The operating load rate of downstream industries has limited improvement, with most maintaining just-in-time purchasing. The frequency of transactions in the recycling market is not fast. Due to sporadic terminal purchases, the operating load of recycling manufacturers has not fluctuated significantly, and the overall industry operation tends to be stable. As recycling manufacturers have a certain amount of spot inventory, the overall supply in the market is sufficient.