Prime Virgin Polymer Prices sourced from major polymer websites in China, quoting in Renminbi (RMB), inclusive of VAT, with an exchange rate of 1 US dollar equaling 7.2855 RMB.
New York crude oil concluded at $77.17 per barrel, rebounding $2 from the Asian section. However, it is tracking its third consecutive weekly loss as concerns over supply disruption from the Israel-Hamas war diminish, shifting focus back to fundamentals.
In China, prime plastic prices are influenced by feedstock values, market sentiments, and global supplies. Most resins are weakening not only in China but also in South Asia, the US, and Europe. Polyolefin prices are falling below $900 per ton as downstream production operates at reduced levels due to slow consumption. The market faces pressure from overstocks, the impending Christmas season in the Western world, and the Chinese New Year in early February. Market participants exercise caution in buying, with no polymer selling well. In fact, more off-grades are available in the market, and prices are subject to further discussion regarding quantity and cash payments.
Recycled materials, including PE, PP, ABS, PS, and highly demanded engineering plastics, are widely available, especially for polyolefin. Many factories are selling materials for liquidity and space as Christmas and the New Year approach. Despite China contracting both imports and exports, recycled materials in India and Turkey are slow due to low prime prices and gloomy economic conditions. In the US and Europe, recycled pellets under sustainability programs, like PET flake and pellets, show a phenomenon where these pellets or flakes are partly imported from Asia, especially China. Concerns arise about the competitiveness of European and US recycling plants, potentially leading to closures. With freight being so cost-effective, exporting plastic waste like PET bottles to Asian factories for recycling and shipping back to exporting countries has become a viable option. Recently, many recycling factories in advanced economy countries are facing financial losses due to high production costs, resulting in decreased competitiveness.
In Asia, plastic waste and scrap are further slowing down as recycled materials struggle to cover their costs. More processed scraps, like PE PP regrinds, are offered from the US and Europe at around €300 per ton, even with collection and processing costs exceeding €600 per ton. They are now sold at the €300 per ton level to Asia due to slow domestic demand. Asia boasts the world’s most recycling plants and the largest consumption of recycled plastics but can only handle limited capacities. Most waste and scrap are either restricted for export due to the Basel convention or too expensive to process due to competitive prime prices, causing many factories to struggle for survival. Advanced economies maintain a competitive edge for recycling easy processing, while for more complicated scraps or waste, landfilling or incineration is often more cost-effective. Recently, more PET bottles from curbsides and deposit return systems are imported from the US at a cost of $200 to $400 per ton, depending on qualities. They are recycled and exported as R PET for brand owners’ sustainability programs. Plastic waste with no sustainability programs is likely not considered worthwhile for recycling.