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Analysis of difference between raw PE material and recycled PE Jun 10, 2018

Analysis of difference between raw PE material and recycled PE



Raw materials PE and recycled PE are the main components of PE raw materials. Under normal circumstances, the trend of PE raw materials and recycled materials is basically synchronized. There are more downstream intersections between recycled PE film materials and new materials. The main application is the agricultural film industry, among which enterprises The scale and customer order requirements are different, and the mix ratio is slightly different.


After deducting some companies' investigations or providing data for companies evading related issues, nearly half of the companies indicated that they would use recycled materials. From the perspective of business scale, the proportion of renewable materials added to large and medium-sized enterprises is 30% to 40%, while the proportion of renewable materials used by some small-scale enterprises can reach more than 60%. The use of recycled materials in the case of high prices of new materials is high. The proportion can even reach 70%-80%.


With the great changes in the living environment of recycled materials in recent years, structural adjustments have been made to the fundamentals of their own supply and demand. At the same time, the price center of new materials has been greatly reduced, and unilateral trends have few opportunities to maintain for a long time. Raw materials and regeneration The correlation of material prices gradually weakened, and their own supply and demand fundamentals have become the key factors affecting the trend of their own market. Zhuo Chuang statistics show that the average price difference between new PE materials and recycled materials in 2017 narrowed to around 1,500 yuan/ton. In particular, after the promulgation of the prohibition order in the second half of the year, the renewable PE market suddenly suffered a large supply gap. The price of recycled PE rose to RMB 7,600-8,000/ton, and the price gap between raw materials and recycled materials narrowed to RMB 1,000-1,100/ton, even in some periods. 1000 yuan / ton, due to supply is difficult to find, the new material for renewable PE formed the first wave of demand substitution.


According to the data of 2018, the price gap between raw materials and recycled materials continues to narrow. In some cases, the spread is between 300-500 yuan/ton. The impact of new materials and recycled materials prices has been significantly weakened. Take the example of the previous week, the trend of renewable PE and new material PE is slight. There are differences: the raw material market is weak due to futures, and the market mentality is falling. However, due to the conversion factors of coal chemical industry, the linear supply pressure is eased, and traders are not willing to offer high interest, with narrow fluctuations being the main reasons. In the game of supply and demand in the renewable materials market, the import volume of waste plastics has fallen sharply. Combined with rectification factors, there is not much supply of renewable PE, and the market is firm. At present, the new material and recycled materials do not include a VAT spread of 700-720 yuan/ton, which is not much changed from last week. At current price differences, the small fluctuations in the renewable PE market have little effect on the raw material market.


Hua Li Bao Co., Ltd. always insists on using imported PE raw materials to ensure the quality of the substrate!


For more information, please contact us veralee@hualibao.com.cn