The price gap between old and new materials narrowed, and recycled plastics are in an awkward position
September 26, 2022
The price gap between old and new materials narrowed, and recycled plastics are in an awkward position
This year the market has been unusually quiet, despite the usual positive buzz around the return of Chinese New Year. Although downstream factories are back in production after the holidays, the market has rarely heard of a big deal. In addition, during the Spring Festival, the petrochemical inventory is high, new expected uncharacteristically downward trend, leading to renewable enterprises into the market is particularly cautious, support price rise expectations have been weakened, so that after the 15th day of the first month market sentiment is still insufficient.
Weak economic forecasts are only slowly coming through
China's GDP is a very important index to measure the overall economic development of our country every year. After 2017, GDP growth showed a downward trend, and the 2019 economic blue book predicted a decline of 0.3 percentage points to 6.3%. GDP has been used as an indicator to measure the economic development of a country or region. It can be predicted that the rigid demand of the plastics industry will continue to be weak this year. As seen from the procurement situation of jinlianchuang in the downstream products field, no matter in the new material market or the renewable market, the mainstream transaction is slow to form and has been dominated by small and medium-sized orders.
The price difference between old and new materiais narrowed back shipping pressure
After the downstream procurement is still not concentrated volume, petrochemical new material inventory pressure, after the year the offer appears "green door" market. The recycled plastic market does not have much inventory before the festival, and the supply is expected to be difficult to increase after the Spring Festival under a variety of normalized environmental protection inspectors, the enterprise after the festival inertia noise rise expectations lower, continue to hold the goods to sell, offer into the dilemma pattern. In conclusion, after the new and old material price gap gradually narrowed, back to the material situation is particularly awkward. Jinlianchuang data shows that after the New Year, the tax-free price of liny PP powder is around 7f800 yuan/ton, and the tax-free price of qilu zhongtian T30S is also reduced to 8,100 yuan/ton, while the first-grade white transparent PP particle is still at 7,600 yuan/ton, the price difference between the two is narrowed to 500 yuan/ton, and the shipment of high-quality feedstock is obviously under pressure. At present only in the low - end goods source volume, but the delivery rhythm is slow.
Weak market under the enterprise market enthusiasm is low
In a weak market, the enthusiasm of enterprises into the market is low. Due to insufficient downstream purchasing efforts after the Spring Festival, most of the feedback-material enterprises symbolically opened around the eighth day of the eighth lunar month but did not start up, and part of the equipment was put into production after the 15th day of the first lunar month for maintenance. Recently, there are not many new orders in the downstream, and the raw material inventory is mainly used before the Spring Festival, and only tentative inquiry is made for the return materials, so that the return materials market is carried out slowly, directly suppressing the enthusiasm of enterprises to enter the market. Jinlianchuang understands that up to now, the operating rate of mainstream markets in Shandong, henan, hebei and jiangsu is about 2%, which is about 5% lower than that during the Spring Festival in previous years.
At present, the downstream steel demand is insufficient, and the price difference between old and new materials is too low to form the mainstream trade of feedstock. Most enterprises are expected to further release the purchase amount of blown film, injection molding, pipeline and other industries after the end of the first month, when the trading volume will form a certain scale. But in view of the weak economic forecast for this year, most enterprises are expected to recycled plastic market this year is difficult to be optimistic. However, under the normalization of environmental protection and the prohibition of waste orders, the industry is still in the transition period, and the tight supply will still form a strong support for the offer, and the narrow price difference between old and new materials will become the normal in the later period.
EVER GREEN(ZHEJIANG)NEW MATERIAL CO., LTD / KUNSHAN GREENPACK CO.,LTD
