Prime Virgin Polymer Prices, sourced from leading polymer websites in China, are quoted in Renminbi (RMB), including VAT, using an exchange rate of 1 US dollar equating to 7.3173 RMB
On Friday, October 27, the crude oil price in New York closed at $85.54 per barrel, marking a $2 increase from the Asian market, driven by concerns about escalating tensions in Israel and Gaza potentially sparking further conflicts in the Middle East, which could impact global crude oil supplies.
Prime plastic prices have displayed relative stability, especially for general plastics, compared to two weeks ago. However, engineering plastics have witnessed variations; POM has decreased by nearly US $200 per ton due to oversupply, while PMMA has risen by over US $150 per ton due to feedstock value increases. The market faces economic stagnation and geopolitical tensions arising from the Middle East, the Ukrainian-Russia conflict, China’s claims over Taiwan, and territorial disputes in the Southeast Asian sea. These factors contribute to uncertainty in demand and slow growth. Recent financial reports from petrochemical companies suggest poor results, leading to a reduction in prime resin production to stabilize prices. Market players exhibit cautious pessimism, and with the approaching Chinese New Year on February 10, economic activities are expected to slow down by December.
Recycled materials have experienced limited price changes as there is minimal room for further reductions. However, downstream manufacturers may switch to prime materials if prime prices drop further. Over recent years, the consensus for using recycled content to support environmental sustainability has increased, boosting demand for PET bottle flakes, pellets, and HDPE bottle pellets. This has pushed their prices higher than prime resins. Due to sluggish demand and excess capacities, most recycled materials not involved in international brand owners’ sustainability programs are impacted by low prime prices and an uncertain economic climate. Various recycled materials, such as HDPE, LDPE, PP, PVC, PET, PS, and ABS, are offered at discounted rates from Japan, Europe, and the US to stimulate sales. Many recycled materials in Europe and the US are operating at a loss, with selling prices falling below $600 per ton, which is less than their production costs when considering washing, regrinding, and pelletizing. The future of most recyclers hinges on the upcoming mandatory use of recycled content in packaging and other plastic products to stabilize selling prices. Currently, in economically advanced countries, mixed-color and black PVC, PE, PP, PS, and ABS materials are being sold at a loss due to competition from low prime virgin prices.
Scrap plastics, particularly general plastics, are being sold at lower prices in developed nations due to reduced demand, influenced by the competitive low pricing of prime and recycled materials. There is an abundance of offers for low-grade LDPE film scraps, OPP, mixed purges, PET trays, super sacks or big bags, floor sweeps, and agricultural scraps. Many plastic scraps from the US are quoted at a few cents per pound ex-work, which is below the collection and baling costs. Unless a system is established to support collection expenses, a substantial amount of recyclable plastic may end up in landfills or be incinerated, highlighting the need for mandatory Extended Producer Responsibility (EPR) and the use of recycled content to sustain the industry.