This week, the atmosphere in the recycled PE market was weak, and some high priced transactions of certain particles were hindered. In the traditional off-season of demand, downstream product factories have reduced their order volume, and due to their high finished product inventory, in the short term, downstream manufacturers mainly focus on digesting their own inventory, reducing their demand for raw materials and putting pressure on some high priced particles to sell. The production of recycling manufacturers has decreased, but the speed of delivery is slow, and the market's spot inventory is relatively high, which can still maintain rigid downstream demand. The supply of raw materials is still relatively low, making it difficult for prices to fall. It continues to support the quotation of recycled particles, and currently the price difference between new and old materials is in a positive range. Therefore, although some particle prices have fallen due to demand during the week, the decline is limited, and most particles remain stable and wait-and-see, with flexible actual trading.
In terms of profit, the mainstream price of recycled PE market has not fluctuated much this week, and the price of raw materials remained stable after a slight decline last week. The difficulty of recovering raw materials in the short term is still high, and the supply is difficult to increase significantly. Overall, it is still at a high level. The theoretical profit of recycled PE particles during the week is around 243 yuan/ton, slightly improving compared to the previous period. Under the pressure of shipment, the negotiation space for some particles has expanded, but the cost is high, and the recycled particles are still at a low profit level, making it difficult for operators to operate.
Looking ahead to the future, Jinlian Chuang expects a weak and stagnant market for recycled PE in the short term, with weak actual trading. In the traditional off-season of industry demand, downstream product factories have not added many new orders and lack confidence in the future. The purchasing sentiment for raw materials is sluggish, which creates a significant negative impact on the recycling market. Due to demand constraints, although recycling manufacturers have taken the initiative to reduce production costs, the short-term shipment pace is slow, and some merchants are gradually facing inventory pressure, making sales more difficult. Some particle prices may have loosened their focus, but due to cost and new material support, most merchants still rely on stagnant quotations.
Post time: May-20-2024