Prime Virgin Polymer Prices are gathered from major polymer websites in China, quoted in Renminbi (RMB), including VAT, with an exchange rate of 1 US dollar equaling 7.1702 Chinese RMB.
The crude oil price increased from a 6-month low of $69.34 in Asia to $71.23 in New York on Friday, December 8. The lower prices were attributed to sluggish global energy demands and a pessimistic economic outlook in China. Additionally, the US increased domestic supplies to a record peak of 13 million barrels per day.
Prime resin prices and demands in China are further weakening due to lower feedstock costs, weak demands, high stock levels, new production capacities coming online, and low seasons. Petrochemical companies extend their maintenance shutdowns to control their supplies to support prices. Low prices are not only seen in China; PE prime and off-grade in the US are offered at around $700, and other polymers are offered at discounts. Europe and Japan also follow suit with low prices for all polymers.
Recycled material prices in China and some Asian are supported by downstream manufacturers using them as PCR recycled content. For example, PET flakes are exported to the US and Europe at prices over $900 per ton. Recycled pellets sold without support from sustainability programs for recycled content are priced at levels that might not cover recycling costs. Recyclers in Southeast Asia are developing markets in India and other economically advanced countries instead of the traditional market, China. For instance, PE recycled pellets can only sell at the $700 per ton level, while India can accept them at the $900 per ton level. Similarly, general plastics like polycarbonate, nylon, and PC/ABS see an increase in exports to Korea and Europe, especially for the automobile and electrical appliances industries.
Scrap materials are abundantly available, as most manufacturers prefer prime materials due to competitive low prices. This is particularly evident in PE and PP, such as MRP, mixed-color post-consumer PE film, big bags, and PE/PP caps with labels. On the contrary, post-consumer HDPE and PET bottles have good outlets with high prices due to increasing demands from brands using them as PCR recycled content. Engineering plastic scraps supported by sustainability programs sell well, like polycarbonate for automobile industry, whereas those without, like PMMA and ABS, sell at a much lower prices. The future of recyclers lies between their outlets, whether for sustainability or traditional demands, competing with prime prices.