Report for China & South East Asia

The following table shows recent prime prices taken from China’s major virgin polymer platforms, inclusive of VAT and quoted in Renminbi (RMB) which has an exchange rate of 7.2868 to the US dollar at the time of writing:

West Texas Intermediate (WTI) crude closed at US$ 63.02 per barrel on April 25, down 2.6% from the previous week and indicative of weaker global demand, China’s economic slowdown, the rising adoption of new energy vehicles, ongoing global trade tensions and higher output from OPEC+. Slower growth in major economies continues to weigh on the oil markets.

Since April 11, prime plastic prices in China have generally trended lower, attributable to softer demand, lower crude oil/feedstock prices, high inventories and cautious sentiment amid global economic uncertainties, notably slower growth in China.

Looking at the different polymers in turn, weak demand, high inventories and falling feedstock costs have led to lower prices for ABS. China’s ABS production plants are operating at around 67% capacity utilisation. With persistent oversupply and weak downstream orders, prices are expected to remain under pressure.

Polystyrene prices have been ranging between RMB 8130 and 11,550 per tonne, down RMB 50-150 from previous levels, with cautious demand and declining styrene monomer prices the main factors. The market is likely to remain soft amid fragile consumer confidence.

For HDPE, LDPE and LLDPE, prices have continued to fall owing to weak demand and lower ethylene feedstock costs. With around 5 million tonnes of new capacity added in 2025, oversupply pressures will persist unless significant plant turnarounds occur.

Polypropylene (PP) prices have softened in response to sluggish demand, excess supply and falling propylene feedstock prices. China’s PP capacity now exceeds domestic demand by around 11.6 million tonnes, with operating rates at approximately 79%. A downstream demand recovery will be critical for price stabilisation.

PMMA prices remain stable amid steady demand and a limited annual capacity of around 400,000 tonnes but a cautious outlook prevails owing to high methyl methacrylate costs and market volatility. Meanwhile, high inventories and lower bisphenol A feedstock prices have driven polycarbonate prices down to RMB 10,300 per tonne (equivalent to around US$ 1300). Further weakening is likely without production cuts.

China’s PA66 production capacity has surged to over 10 million tonnes from virtually zero a few years ago. Current operating rates are around 43.4% and a combination of oversupply, weak demand and lower feedstock costs are likely to push prices down even further. PA6 prices, meanwhile, have been weighed down by weak market demand and falling caprolactam costs. China holds over 50% of global PA6 production capacity, estimated at around 11.6 million tonnes annually. High inventories and new capacities continue to put pressure on the market outlook.

POM prices have declined around 2% to RMB 8800 per tonne at the time of writing. Despite a production capacity of 860,000 tonnes per year, persistent oversupply and a sluggish demand recovery are expected to keep prices under pressure. No significant production cuts have been reported.

PET bottle-grade resin is being quoted at RMB 5800 per tonne, with strong seasonal beverage demand helping to support prices. However, with an additional 2.4 million tonnes of annual capacity added of late and high operational rates, downward pressure may return after the summer unless export demand improves.

PVC prices dropped recently to RMB 4712 per tonne owing to weak real estate demand, oversupply and declining calcium carbide/ethylene costs. China’s PVC production capacity reached 35.85 million tonnes in 2024, with a compound annual growth rate of 3.2% forecast until 2033. Demand remains soft, although government stimulus for infrastructure projects could offer limited support.

China’s prime resin markets face significant headwinds from the macro-economic slowdown, capacity expansions and weak domestic/export demand. Without meaningful production cuts or a stronger demand recovery, downward pressure on prices is likely to persist through the second half of 2025.

Recycled pellet prices in China generally follow prime resin market trends. However, there is growing and continuous demand driven by sustainability initiatives, especially for use in electrical appliances, tools and packaging products both domestically and for export.

In 2024, China exported approximately 5 million tonnes of recycled pellets and flakes to the USA, Europe and elsewhere - including PET, PE, PP, PS and ABS, as well as compounds of different polymers. 

Demand for recycled content is increasing from sectors such as automotive and electrical appliances. Nevertheless, recyclers face challenges in meeting the higher quality requirements set by brand owners. The ability to achieve the necessary mechanical and chemical properties depends largely on feedstock purity, adequate recycling machinery, skilled workers, competitive production costs and infrastructure. Asian countries - particularly China and Malaysia - are well positioned to become the leading suppliers of high-quality recycled materials globally.

Meanwhile, imports of scrap plastics into South East Asia are facing growing restrictions. Thailand and Vietnam have tightened import controls, while Malaysia is conducting intensive inspections on almost every incoming container. It is estimated that tens of thousands of containers are currently stuck at Malaysia’s Port Klang, causing severe logistical bottlenecks. Some shipping lines have stopped accepting bookings for Malaysia-bound “waste” shipments. As a result, recyclers are struggling to secure raw materials for production. Liquidity problems are emerging owing to prolonged storage times, with many recyclers facing high demurrage costs. This situation is severely impacting profitability and increasing the risk of financial losses.