Market Update for the prime, recycled, and scrap plastics as of November 12, 2022.

Prime virgin prices are from China’s major virgin polymer websites in Renminbi RMB. The exchange rate is 1 US dollar= Chinese Yen at 7.0973.

Crude prices closed at $88.98 on Friday in New York, November 21, 2022, on mixed news of the US crude oil stock level, geopolitical concerns, economic outlook, pandemic situations in China, and the strength of the US dollars.

Prime virgin materials in China continue to decline further due to increasing cases of Covid-19 in Guangdong and other major cities, devastating manufacturing industries. In addition, the global economic recessions impacting export markets and weakening domestic demands are attributed to the hiking unemployment rates resulting from factories closing down, the collapse of property markets, and the gloomy economic outlook. Some major prime material producers have cut their productions to stabilize prices from the further slide, and results have yet to see at some point.

Perhaps, in the last couple of days, the Chinese stock market rebounded, and the gaining of China yuan from $ 1 to RMB 7.35 to $1 to RMB 7.09 led to speculation that China might relax its Covid policy would improve the present economic conditions.

Recycled materials have been following the footsteps of prime price movements. Prices have dropped $20-$50 per ton for PE, PP, and Styrenic materials, $200 per ton for Nylon 66 and polycarbonate, and $ 40 per ton for PET and PVC. All recycled pellets of general plastics and engineering plastics are under pressure on the weakening renminbi, liquidity problems, and uncertain economic outlook. Market players do not expect any improvement until 2023.

Plastic scrap recyclers receive more offers from the US and Europe at reduced prices. Natural PE films sell from $450 to $ 500 depending on quality; low-quality and agricultural films almost have no outlet. Indian markets had always been active and paid higher prices until recently when domestic prime material producers reduced prices. Europe has energy issues, and the US producers cut their domestic offers due to slow market demands. Recovery plastic supplies from agricultural industries, post-consumers, and industrial production are available. However, as recycled materials are on a downtrend, recyclers reduce their buying prices to justify possible market changes in the coming months, especially since the Chinese New Year is approaching in a couple of months.

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