Prime virgin prices are from China’s major virgin polymer websites in Renminbi RMB. The exchange rate is 1 US dollar= Chinese Yen at 7.1925
Crude Oil prices rose to over $90 last week before settling at $85.61 in New York on October 14. OPEC+ agreed on a production cut which supported the price hike. However, economic downturn and geopolitical concerns brought the price back to eighty dollars.
Bearish economic conditions and pandemic restrictions still affect the demands for both general and engineering plastics. Market participants do not expect a turnaround in demands and prices before the beginning of 2013. Prime resin prices in China have been moving on feedstock costs. More and more factories are moving out from China to avoid extra tariff rates and sanctions imposed primarily by the US, and China has no time frame to lift travel restrictions. All these factors contribute to the bearish demands domestically and their exports.
Recycled material prices either remain und stable or weak due to the influx of European and US materials. Western recyclers have experienced the worst market conditions since the pandemic. There are offers of recycled pellets and regrinds materials at half of the peak a few months ago. Many factories are not fully operating as energy costs are so high that they cannot afford to operate at breakeven. Market traders are uncertain when the market will return because of inflation, and the excess supply of feedstocks.
Scrap materials are dropping in price in Asia primarily due to slow market demand and strong US dollars. Grade A PE film sells at $ 450, and PP big bags grade A at 330 is an example of downward price adjustments of more than 30 percent in a couple of months. The worst preformed material is POM; regrind prices have dropped from $ 1600 per ton to $800 per ton in a few months. For polycarbonate, prices have picked up from the bottom but retreated on feedstock costs and market sentiments last week.