Geopolitics Ignite R-LLDPE Rally in China as Supply Tightens and Costs Soar

Geopolitics Ignite R-LLDPE Rally in China as Supply Tightens and Costs Soar

Ivan Turgenev 18-Mar-2026

R-LLDPE in China shifted from a quiet February to an early-March rally as upstream cost pressures collided with front-loaded converter buying. Spot activity accelerated after weeks of range-bound trade, with buyers front-loading purchases ahead of Q2 production and sustainability mandates. Market participants cited tightened bale availability and logistics challenges stemming from Red Sea rerouting as catalysts, combined with rising virgin resin realizations, pushing extrusion-grade recycled loads higher. The narrative moved from muted procurement in mid-February to aggressive forward cover and tighter spot availability in early March. Demand remained anchored by packaging and film extrusion, while agriculture, industrial, and auto sectors provided incremental absorption. Packaging/film extruders ramped for e-commerce and FMCG structures and tolerated higher freight-related costs, with converters underscoring a double-digit surge in supply costs to maintain continuity. Upstream inflation and constrained recycled-feedstock availability tightened production, while higher feedstock costs narrowed substitution economics, supporting stronger realized values for recycled grades. R-LLDPE outlook points to continued upside into March, though volatility persists.

Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility. Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
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