Prime Virgin Polymer Prices are sourced from major polymer websites in China and quoted in Renminbi (RMB), including VAT, with an exchange rate of 1 US dollar equaling 7.1493 RMB.
Crude oil closed on the New York Mercantile market at $75.54 per barrel, experiencing a price decline due to the release of some hostages in Gaza, reducing the geopolitical risk factor.
Prime materials:
Despite expectations that low seasons were over and the market would improve with economic stimulus introduced in October and potential compromises in deals following the Biden-XI meeting in San Francisco, prime virgin prices and markets continue to weaken. The current market dynamics reveal a complex interplay of factors, with crude oil’s sharp decline and high market valuations contributing to a swift downturn. Downstream demand weakness has led to increased inventories for manufacturers and traders, and an anticipated imbalance in supply and demand is causing a downward price trend. Looking ahead, the international oil price may experience initial declines followed by an overall upward trend. Challenges persist in the market, particularly with oversupply issues in ABS, PET, PP, and PE. The short-term outlook suggests a cautious market sentiment and low economic activity. The monthly average price of most engineering thermoplastics on the Chinese market decreased in October and the first half of November, attributed to lower feedstock prices and an overall low demand.
Recycled Materials:
In the recycled materials sector, China presents varied scenarios. Recycled PE undergoes price adjustments with downstream manufacturers displaying cautious purchasing behavior, but maintaining an overall stable market. Recycled PP witnesses price hikes due to limited availability of high-quality materials, with market stability maintained through a watchful approach. Recycled PET experiences price declines amid sluggish chemical fiber sales, influencing the buying atmosphere. Recycled PVC remains stable, driven by active replenishment from downstream factories. Recycled PA operates steadily with average demand, while Recycled PC prices remain stable, although manufacturers operate at lower rates, signaling a consolidation period. Overall, the recycled materials market displays nuanced trends, with stability in certain segments and cautious optimism in others. Recyclers are not expecting major price changes for the rest of the year, and most industry players are eager to move past the challenges of the current year.
Scrap Plastics:
Selling scrap plastics has proven challenging due to a price mismatch. For instance, PET bottles from the deposit return system sell at $380 per ton ex-work in the US, but recyclers in Asia struggle to afford this price when considering freight and import costs, resulting in a cost exceeding $500 per ton. With selling prices of flakes at CNF 900 CNF, there is no margin. Similarly, for PE film grade A quality is quoted at $380-400 ex-work, both from Europe or the US, whether processed at a higher cost domestically or exported to Asian countries for lower-cost processing, this is almost no margin for the business. This situation extends across various plastic scraps, making the market challenging and highly competitive. Despite numerous offers in the engineering plastics market, finding profitable ones is difficult due to tough competition and limited availability.