The Market Update for Prime, Recycled, and Scrap Plastics as of January 3, 2025, 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 7.3215 RMB.
New York oil prices closed at $73.96 Friday afternoon (Eastern Time), as U.S. stockpiles fell last week and expectations of cold weather in the U.S. and Europe boosted demand, pushing prices up by $3 per barrel over a few days.
In China, prime prices have not reflected the increase in crude oil prices due to the fragility of China’s economy in 2024. There is doubt that the situation will improve in 2025 despite the government’s introduction of stimulus packages. As the Chinese New Year approaches, economic activity will slow down starting next week and continue until the end of February. Market participants are not stocking inventory due to pessimistic expectations and volatility in global financial and political markets. Below is the market situation for some plastic resins:
ABS: Prices are not likely to increase due to sluggish demand and increased supply. Notably, Zhejiang Petrochemical’s ABS plant has reached a total capacity of 1.3 million tons following recent expansions.
PS: High upstream operation rates have eased supply tightness, and prices remain unchanged, with downstream buyers fulfilling only immediate needs.
PP: The market has maintained stability, with raffia traded at RMB 7,500 despite crude oil prices providing cost support. However, traders have adopted a wait-and-see approach due to a bearish market and lukewarm downstream purchasing. Market participants have commented that actual transaction prices remain open to negotiation.
PE: Prices have decreased by RMB 300, falling from RMB 9,000 to RMB 8,700 since December 27 due to limited demand and increased availability from new and restarted facilities. Traders remain cautious about participating in business.
PMMA: Market prices have declined recently, and demand has remained flat, with limited trading activity and market participants adopting a wait-and-see approach.
PC: The market has exhibited weak, fluctuating trends, with injection-grade selling at RMB 12,500, which translates to $1,500 excluding VAT. Buyers remain cautious, as year-end downstream procurement has generally decreased and is predominantly limited to small transactions.
PA6: The market has remained steady, with spinning-grade prices as low as RMB 11,350 in East China. Prices are expected to remain at this level or lower due to a lack of cost support stemming from slow demand.
POM: Prices have been dropping since 2022, falling from over RMB 20,000 to the current level of RMB 10,700 due to subdued economic conditions and insufficient downstream demand.
PET: Despite rising material costs, East China’s PET bottle-grade prices remain at RMB 6,130. Downstream buyers have been hesitant to follow the upward trend, leading to a stalemate in transactions.
PVC: Prices have remained at this level, translating to less than $650 per ton in the U.S. Several countries are working on restrictions and anti-dumping measures to prevent imports from competing with their domestic markets.
Overall, market conditions are unfavorable, and the situation is not expected to improve until after the Lunar New Year holiday ends in late February 2025.
Recycled Plastics Market Overview
Recycled materials in China and other Asian countries remain sluggish for PE and PP.
LDPE: Natural pellets processed from grade A natural film or 98% film are selling for around $800 per ton CNF , China’s main ports. Black recycled pellets are priced at $600 per ton CNF. These prices barely cover material costs.
PP and HDPE: The situation is similar. For example, importing big bag scrap to Vietnam costs approximately $150 per ton in import fees. With processing costs at $300 per ton, grade A big bags would only be worth $200 per ton.
Regional Restrictions: Thailand, Vietnam, and Indonesia‘s authorities are not renewing licenses for recyclers to import plastic waste, and the EU plans to restrict and ban exports by 2026 under the European Waste Shipment Regulations.
PS and ABS: Recycled PS and ABS for electrical appliances, with impact strengths of 8 and 12, are currently selling at $940 (HIPS) and $900 (ABS) CNF China main ports. There is a risk to quote in RMB due to the strong U.S. dollar.
PC, Nylon, PVC: Some traders have commented that they did not receive any orders throughout December.
PET :PET flakes remain in demand, driven by sustainability programs using recycled content in soft drink bottles and general applications.
Scrap Plastics Market Conditions
Scrap plastics continue to be impacted by low demand, a sluggish global economy, low prime resin costs, and regulatory constraints on plastic waste imports.
Oversupply: Prime resin prices remain low in Europe, the U.S., and Asia due to excess supply. Recycled materials have become less competitive, especially where regulations do not enforce the use of recycled content.
Market Challenges: Brand owners often use prime resin prices to leverage negotiations. Offers for recycled materials from Japan, the U.S., and Europe have arrived at exceptionally low prices.
B and C-grade PP big bags have no market.
HDPE mixed bottles are selling for $200 ish per ton.
Mixed rigid plastics are priced at $120 CNF Asia.
Many recyclers in the US and Europe are struggling to cover shipping and inland trucking costs, and some have resorted to landfilling or incineration.
The industry needs an effective system to enforce the use of recycled content. Countries with recycling capacities and sound environmental management systems should reopen borders for the importation of recyclable plastic waste. There is a significant mismatch between the regions generating plastic waste and those capable of recycling and utilizing it as recycled content in the circular economy.