At the end of the Spring Festival holiday, there are frequent good news in the recycling field. The industry resumes work and production, and is positive about the market outlook. It is expected that the recycled PE market will rise by about 100-200 yuan/ton in the later period. We hope situation will be better for this as well as plastic filament machine line.
New material PE showed a strong momentum after the holiday. During the Spring Festival, the United States was hit by extreme weather, many crude oil companies malfunctioned and shut down, and U.S. supply tightened, leading to a rapid increase in international crude oil prices, which exceeded 60 US dollars per barrel. The sharp rise in futures has clearly boosted market confidence, and the industry has been enthusiastic about speculation, and has a strong sense of continued bullishness about the market outlook.
According to the statistics of Jinlianchuang, the two stocks after the holiday in 2021 are only 920,000 tons, a record low in the past five years. The resumption of downstream factories has increased the demand side, making it more likely that the price of new PE materials will remain firm. With the continuous expansion of the price difference between new and old materials, the boosting effect on the recycling market becomes more and more obvious.
Containers are difficult to operate and there is a shortage of imported recycled pellets
The tight supply of foreign containers before the holiday has not yet been resolved. The goods cannot enter customs in a short period of time. Before the holiday, due to the skyrocketing ocean freight, the difficulty of obtaining a container, the customs strictly inspects solid waste and pre-holiday. Due to the pandemic and other factors, traders are afraid to hoard large quantities of goods. Most traders’ inventories are only sufficient for about 2 weeks. If the shortage of containers is difficult to improve, import traders will face a huge crisis. This is an opportunity for domestic recycled pellets. The demand gap caused by the shortage of imported recycled pellets will likely be occupied by park-based manufacturers whose quality can be guaranteed for a long time.
Wool cargo tight support plate to support the stable operation of recycled particles
Wool is affected by seasonality and it is difficult to recycle. Before the Spring Festival holiday, the inventory level of wool materials has been at a low level, and the price has been raised many times. At present, the festival atmosphere in the field is still strong. Most wool manufacturers expect to start construction gradually after the fifteenth of the first month. The shortage of goods is difficult to improve in a short period of time, and the cost aspect supports the steady operation of recycled particles.
Recently, on-site environmental protection inspections are not strong, and there is no bad news on the policy side. The national epidemic has been fully controlled. Under the guidance of the widening price difference between new and old materials, the steady operation of wool materials, and the increasing demand for various benefits, Recycled PE will usher in a good start, and it is expected that mainstream quotations may rise by 100-200 yuan/ton next week. The mainstream offer of LLDPE particles in Hebei is 5800-5900 yuan/ton, and the low-pressure white small hollow particles are 5400-5500 yuan/ton.
Post time: Mar-12-2021