Prime virgin prices are from China’s major virgin polymer websites in Renminbi RMB. The exchange rate is 1 US dollar= Chinese Yen at 7.1159.
Crude Oil prices retreated from a recent high and closed at $79.49 in New York on September 30.
General plastic prices of ABS, PS, PP, PE, and PVC have moved within the US $ 50 per ton over the last two weeks, following the footsteps of oil prices and feedstock costs. Polycarbonate has increased by more than the US $300 per ton on bisphenol A price hike. POM has recorded the most drop amongst all the plastics. While China continues to practice the zero Covid policy, manufacturers are still unable to resume average production as orders are diverted to Southeast Asian countries.
Demand for recycled materials is slow both in China and other Asian countries, partly impacted by the strong dollar and downstream manufacturers are reluctant to purchase in anticipation of possibly further slides in prime prices. Natural PE recycled pellets sell at $ 870 per ton level; black PP recycled pellets at $ 600 per ton, which reflects buying price of natural PE films and mixed color PP big bags at $480 and $ 250 per ton, respectively. Most market players wait for the 20 Communist Party Congress’s outcome in October before committing themselves to essential deals.
PP and PE scrap plastics have reduced prices ranging from $ 50-100 per ton. Since the most consumed market is China, a depreciation of the Renminbi of more than 15 % in recent months has translated to a price slide of more than the US $ 100 per ton for materials that sell at $ 700 per ton. In the same situation as other high-value materials, most recyclers take extra margin to safeguard themselves from losing money in currency depreciation.