Prime virgin prices are from China’s major virgin polymer websites in Renminbi RMB. The exchange rate is 1 US dollar= Chinese Yen at 6.9870.
Oil prices remained low at $ 85.11 in New York on Friday, September 16, due to a possible slump in global energy demands caused by primarily China’s economic downturn and the spiking US dollar interest rate.
The downward trajectories of prime virgin prices since the first quarter in China seem to reverse course, as most materials have gained prices despite demand lack of momentum. Traders are cautious and hesitate to commit themselves to deals amid geopolitical and pandemic complications. Materials extended their gains are supported by the tight supplies and feedstock cost increases. It is insufficient for buoyant demand.
Recycled material prices have not improved in prices and demands in China, although prime resins have rebounded slightly after the Mid-Autumn festival. Market traders are not confident that demands would pick up in China as most factories only operate part of their production capacities due to slow demands. The US and European virgin and recycled prices are still dropping. Offers of prime, off-grade, and recycled materials are offered at discount prices. As China is the second largest economy globally, with the zero Covid policy still impacting industries, market players are suspicious about the forthcoming market conditions.
More plastic scraps are available both in quantities and items. Prices are still dropping for almost all the general and engineering plastic scraps in Europe and the US. Items like HDPE, and PET bottles, for the first time in two years, are offered to the Asian markets. Agricultural plastic PE films and drip tapes are on offer for Asia, but no one shows an interest in taking them. The most sellable PE films have problems finding outlets, especially low-grade qualities. There is a disconnect between Asia, and Europe & the US, even though prices have dropped to match the Asian markets. Recyclers want to wait for the market turnaround.