The Market Update for Prime, Recycled, and Scrap Plastics as of October 25, 2024, reports prime virgin prices from major Chinese polymer websites, quoted in RMB and inclusive of VAT, with an exchange rate of 1 USD to 7.1341 CNY.
On October 25, WTI crude oil closed at $71.78, driven by heightened geopolitical tensions in the Middle East and strong global economic data. These factors have created upward pressure on oil prices due to supply uncertainties and increasing demand.
Prime virgin materials in China are not showing positive effects from recent Chinese government stimulus measures. Both global and Chinese markets remain volatile, with petrochemical companies experiencing weak demand and profit margins. Major international chemical companies, including BASF, Sabic, Ineos, and ExxonMobil, have announced production cuts or plant closures.
The LDPE (Low-Density Polyethylene) market faces price decreases due to increased supply and weak downstream demand, leading to lower domestic prices. The PP market also remains sluggish, with slight price reductions due to high inventories and low demand. Similarly, the PVC market has seen a 150–200 CNY/ton drop due to weak demand and increased supply.
Other plastics such as PS, ABS, PET, and PC have also experienced varying levels of price reductions, largely driven by weak demand, high inventory levels, and cautious market sentiment. The PA6 and PA66 markets continue to decline under cost pressures and low demand.
The recycled plastic market, especially in Southeast Asia (Thailand, Malaysia, and Vietnam), is facing challenges as recyclers struggle with regulatory uncertainties around 2025 import licenses. This situation has led to a significant disruption, with recyclers hesitant to commit to end-of-year orders, particularly for December.
Recycled PE remains stable but subdued, with limited downstream inquiries. Recycled PP faces low demand and stable or slightly declining prices due to high availability. Recycled PS demand remains weak, and recyclers are reluctant to take new orders amid licensing concerns for 2025.
The recycled PVC market is oversupplied, with demand unable to absorb available materials. Despite measures to stimulate demand in the construction industry, market sentiment remains bearish. PET bottle-grade recycled material prices are softening, reflecting weaker-than-expected demand in packaging and textiles.
Markets for recycled PC, PMMA, PA, and POM also face weak demand and supply uncertainties. Key industries, like automotive and electronics, show limited recovery, making recyclers cautious about production levels without confirmed 2025 import allowances.
Industry events in Europe and Asia have shown that recyclers are operating at only 60-70% of typical sales levels, with the anticipated recovery from September onwards not materializing.
The scrap plastic market is facing growing difficulties as buyers avoid risking shipments that may arrive after license expirations. Rumors suggest that Malaysia and Vietnam might grant extensions in November, although some sources indicate that these countries have plans to eventually ban plastic waste. Recyclers argue that the materials they import, such as regrinds, lumps, sheets, and pellets from petrochemical companies, are not waste. Upcoming European plastic waste regulations pose additional challenges by potentially banning the export of all recyclables or feedstock for recycled materials. While the EU may struggle to process all its recyclable plastic waste domestically, Asia has the necessary infrastructure, demand, and production capacities for recycled content. Policymakers speculate that a plastic ban will boost local recycling, though some argue that only a small portion of plastic waste can be effectively recycled domestically due to mismatches in demand, production capacity, and economic feasibility.