The Market Update for Prime, Recycled, and Scrap Plastics as of November 22, 2024, features prime virgin prices sourced from major virgin polymer websites in China, quoted in Renminbi (RMB) inclusive of VAT, with an exchange rate of 1 US dollar equaling Chinese Yuan at 7.2444.
Crude oil prices closed at $71.24 per barrel in New York, experiencing a gain of 6 percent, reflecting the market’s response to escalating geopolitical tensions, particularly Russia’s use of new hypersonic missiles in response to Ukrainian strikes.
Polymer prices in China have experienced moderate fluctuations over the past two weeks, influenced by feedstock price movements, supply-demand dynamics, and global economic and geopolitical developments. Below is an analysis of price trends:
ABS (Acrylonitrile Butadiene Styrene)
Weakening downstream demand in home appliances and automotive sectors offset gains from reduced inventories. Despite support from government subsidies, increasing production levels have capped price recovery.
PS (Polystyrene)
Decline in feedstock styrene costs and subdued demand from packaging and consumer goods sectors pressured prices. Inventory levels remain high, reflecting tepid buying activity.
LDPE (Low-Density Polyethylene)
Inventory reduction earlier in November supported prices temporarily. However, oversupply and limited downstream demand in packaging caused prices to soften again.
PP (Polypropylene)
Domestic supply remains ample due to steady production levels, while cautious buying activity among downstream processors has limited price movement. Export demand remains weak due to global economic uncertainties.
PMMA (Polymethyl Methacrylate)
Oversupply in the domestic market and subdued export orders, particularly in optics and displays, weighed on prices. Producers are focused on managing inventories to stabilize the market.
PC (Polycarbonate)
Declining bisphenol A (BPA) feedstock costs and soft demand from construction and automotive applications have pressured prices Nylon (PA66 and PA6)
Weaker demand from the textile and engineering plastics sectors, combined with ample supply, has limited price growth for Nylon products.
POM (Polyoxymethylene)
While automotive and electronics demand provided some support, high inventory levels and reduced export orders kept prices under pressure.
PET Bottle-Grade Resin
Seasonal demand for beverage packaging has supported prices, while decreasing inventories have also contributed to stability.
PVC (Polyvinyl Chloride)
Demand from infrastructure and construction projects continues to support prices, but cautious purchasing behavior among downstream buyers has limited upward movement.
Government subsidies introduced by the Beijing government to stimulate consumption in sectors like home appliances and infrastructure have supported materials like ABS, PVC, and PET. However, weaker macroeconomic trends have tempered broader demand recovery. Potential 60% import tariffs under the incoming U.S. administration have created uncertainties, particularly for export-driven products like Nylon and PET. Producers are closely monitoring global developments to adjust strategies accordingly.
The polymer market has shown mixed performance over the past two weeks, with prices for most materials either stabilizing or declining. The downward trend reflects a combination of ample supply, weak demand in key downstream sectors, and global economic uncertainties. Moving forward, market sentiment will remain cautious, with price movements influenced by inventory management, feedstock costs, and regional policy measures.
Recycled Pellets Market Update
Recycled pellets in China and Southeast Asian countries are reflecting the movement of prime prices, feedstock availability, downstream demand, and regulatory policies.
Prices for LDPE film grade remained stable with minor fluctuations, but injection grades for both LDPE and HDPE face downward pressure due to reduced demand, driven by competition from low-cost virgin materials. Natural film prices hover at $800 per ton, while HDPE black injection is priced at less than $600 per ton.
Prices of black PP pellets have declined further, with selling prices barely reaching $500 per ton. Recyclers are reluctant to process feedstocks like PP big bags, printed PP, used twine, and nettings from agriculture due to low returns. Processing costs exceed $350 per ton, with import costs and wastage adding $60–$180 per ton, making some recyclables economically unviable. Recycled PS and ABS,
prices have fallen to around $800 per ton due to weak demand in electrical applications and industrial sectors. The narrowing price gap with virgin resins reduces the competitiveness of recycled materials in sectors like auto manufacturing and packaging.
Other Recycled Polymers like
PC, PMMA, POM, PET, Nylon, and PVC recycled materials face similar challenges with oversupply, regulatory restrictions, and weak demand, making profitability difficult.
Scrap plastic recyclers relying on imported feedstock face challenges in obtaining permit renewals, particularly in Vietnam and Thailand. Discussions of waste plastic bans across 11 Asian countries add further uncertainty. Many recyclers consider relocating to Malaysia, perceived as having a more lenient policy, but recent customs inspections are causing delays and additional costs.
Low-end recyclables such as mixed PE films, production waste, and low-grade PP big bags often yield negative margins due to high processing costs and low selling prices. Some recyclers shift focus to domestic feedstocks or opt for downstream integration into plastic product manufacturing. While this strategy may secure import licenses and improve profitability, it requires significant capital investment and faces stiff market competition.
Recyclers must navigate regulatory challenges, uncertain market supply, and competition from virgin materials to sustain operations and profitability.