Prime virgin prices are from China’s major virgin polymer websites in Renminbi RMB. The exchange rate is 1 US dollar= Chinese Yen at 6.8737.
Crude oil prices bounced back to $75.67 per barrel from the recent low on tight supplies caused by output cuts from Iraq, easing of inflation, and OPEC’s consensus to limit output.
Prime virgin plastic prices in China did not respond to the increase in oil prices. PP, PE, and PS moved within a narrow range. ABS, PC, and PA 6 are in a downtrend as the demand for vehicles, constructions, and general merchandise is lower than the previous year.
Inexpensive prime virgin materials have hard-hit recycled materials. Converters choose to use prime materials due to cost efficiency. Recyclers have to lower the prices of their black recycled pellets to $600 level per ton (at this level, costs are higher than their selling price) for PET, PP, PP/PE, HDPE, and LDPE to complete with prime prices. However, very few environmentally responsible brand owners who are willing to pay a premium for post-consumer recycled materials, which is a positive sign. There is a concern that plastic waste may not be recycled due to a lack of financial incentives, resulting in more waste being sent to landfills, incineration, and possibly open environment.
Fewer plastic scraps are exported from developed countries like the US and Europe to Southeast Asian regions because of a mismatch of prices. The US scrap prices have increased by $10 to $30 per ton. Examples are HDPE and PET bottles, LDPE grade A film, and mixed rigid plastics. India still pays higher prices compared with other regions in Asia, over $50 per ton for PE film scraps, HDPE regrinds, and petrochemical pellets. As recycled pellets are so low that there is almost no home for big PP bags, agricultural seed bags, and lumber wraps. it seems that the plastic recycling industry continues to face challenges of low prime prices and a lack of brand owners to buy recycled content to support plastic waste sustainability.