The Market Update for Prime, Recycled, and Scrap Plastics as of December 6, 2024, features prime virgin prices sourced from major virgin polymer websites in China, quoted in Renminbi (RMB) inclusive of VAT, with an exchange rate of 1 US dollar equaling Chinese Yen at 7.2715.
The crude prices closed in New York at $67.02 per barrel, reflecting a confluence of factors including OPEC+’s decision to postpone the planned production meeting to April, global demand concerns as major economies such as China and Europe have exerted downward pressure on oil prices, rising production from non-OPEC+ countries like Brazil and Argentina, weak economic data from North America, and the President-elect Donald Trump’s agenda to increase oil production. It is generally expected that oil prices will remain at the $60 level, reflecting the complex interplay of production decisions, demand fluctuations, geopolitical developments, and economic indicators.
Prime virgin prices in China have shown a mixed trend over the past two weeks, influenced by fluctuations in crude oil prices, market sentiments amid geopolitical concerns, and seasonal slowdowns in certain downstream industries. Below is an analysis of the current market conditions and price trends:
- ABS (Acrylonitrile Butadiene Styrene)
Weak demand from the automotive and electronics sectors continues to weigh on ABS prices. Rising costs of upstream styrene and butadiene have slightly increased production costs, but sluggish market transactions and moderate inventories have prevented significant price gains. Prices are expected to remain stable or face slight downward pressure as demand remains lackluster.
- PS (Polystyrene)
Subdued demand from packaging and consumer goods sectors, combined with stable supply, kept PS prices flat over the past week. Slight fluctuations in styrene feedstock costs provided limited support. PS prices are likely to consolidate within a narrow range due to ample supply and weak demand.
- LDPE (Low-Density Polyethylene)
Despite earlier inventory reductions, oversupply and weak demand from packaging applications led to slight price declines. Seasonal slowdowns have added to the lack of buying interest. Continued oversupply and weak downstream demand will likely keep prices under pressure.
- PP (Polypropylene)
The PP market experienced weak consolidation as new production capacity came online, increasing supply. Downstream demand remains weak due to seasonal factors and cautious procurement by buyers. The market is expected to remain stagnant, with limited price recovery potential in the near term.
- PMMA (Polymethyl Methacrylate)
High inventory levels and subdued export orders, especially in optics and display applications, have suppressed PMMA prices. Producers are focusing on reducing inventories to stabilize prices. Prices will likely stay weak unless export demand picks up.
- PC (Polycarbonate)
Soft demand from construction and automotive industries, coupled with declining bisphenol A (BPA) feedstock costs, kept PC prices stable but under pressure. Prices are expected to remain flat amid cautious market sentiment and sufficient supply.
- Nylon (PA66 and PA6)
Weak demand from the textile and engineering plastics sectors, coupled with steady supply, has limited any price growth for Nylon products. Producers are monitoring feedstock trends to manage costs. Prices are expected to remain stable with limited upside potential.
- POM (Polyoxymethylene)
Support from automotive and electronics demand was offset by high inventory levels and sluggish export orders, keeping POM prices steady but under pressure. Prices will likely remain stable in the absence of significant demand growth.
- PET Bottle-Grade Resin
Seasonal demand for beverage packaging and declining inventories supported PET prices, though price gains were capped by cautious market sentiment. Prices are expected to remain stable with some upside potential if seasonal demand persists.
- PVC (Polyvinyl Chloride)
Downstream demand from construction and infrastructure projects provided limited support for PVC prices. However, increased production levels and cautious buyer behavior kept the market in weak consolidation. Prices will likely remain steady with weak upward momentum unless demand improves significantly.
Recycled pellet prices in China have been following the movements of prime material prices. Recycled LDPE natural pellets are priced at around $800 per ton CNF China main ports, while black PE pellets range between $500–$600 per ton CNF China. PS, ABS, and PP demand remains weak, and prices are under pressure. Engineering recycled pellet prices are trending downward, with very pessimistic market sentiments.
With the Chinese New Year approaching on January 29, 2025, most Chinese recyclers in Southeast Asia are planning blackout periods at least one week before and two weeks after the Lunar New Year to avoid shipments arriving during the holiday. Recycled PET flakes and pellets continue to be exported from China to the US and Europe. There is also a growing trend of exporting compounded recycled materials due to increasing demand for sustainable recycled content required by brands. Chinese recycled pellets and compounds remain competitive in price and quality.
Scrap material shipments to Thailand and Vietnam are becoming increasingly difficult due to stricter government regulations. In Malaysia, the government has tightened its approval process for import permits, reducing the number of factories eligible for licenses in 2025.
The demand for scrap materials remains subdued, and prices are not gaining momentum due to the availability of low-priced prime virgin materials. Manufacturers prefer virgin resins for guaranteed quality, higher yields, and better financial efficiency. Recyclers face pressure as governments aim to shift recycling capacity toward domestic waste collections, although global recycling rates remain stagnant at less than 9%, a figure that has not improved since the early 2000s. China’s plastic ban of 2019 was intended to improve domestic recycling rates, but it has not significantly increased recycling in China or exporting countries like Europe and the US. Instead, more plastic waste continues to go unrecycled globally.
Recyclers and scrap traders are at a crossroads, facing challenges from regulatory challenges and competition from low cost prime virgin resins.