The fourth week of August marked a turning point for virgin polyethylene (PE) and polypropylene (PP). After nearly three weeks of upward momentum, sellers' higher offers were largely not confirmed by actual transactions, and the rally lost most of its remaining steam. Recycled grades told a different story, remaining broadly unchanged for a third consecutive week even as the virgin complex moved higher. The one clear regional exception was Brazil, where the PP import market continued to climb, driven by freight and offer dynamics rather than by the same feedstock cycle affecting the rest of the market.

Three Factors Shaping This Week's Market

1. Virgin PE and PP momentum stalled as higher offers went unconfirmed Virgin PE and PP had climbed steadily since early August on rising monomer costs, supply disruption along the Rhine in Europe, and Middle East-driven crude volatility. This week, that momentum nearly evaporated: sellers continued to push higher offers, but buyers did not validate them at the transaction level. When higher quoted levels are not confirmed by completed transactions, it may indicate that sellers are testing the upper end of the move rather than that the market has fully repriced higher.

2. Recycled markets stayed broadly flat, with recycled PET the exception Most recycled PE and PP grades remained nearly unchanged for a third consecutive week, showing little reaction to the virgin-side volatility. Recycled PET was the main exception, moving lower as feedstock bale prices softened. With virgin prices now easing from their recent peak, the price gap between virgin and recycled material has started to narrow.

3. Brazil's PP import market decoupled from the global cycle on freight, not feedstock While the broader virgin PE/PP complex peaked and rolled over, Brazil's PP import market rose for a third consecutive week without pause. Asia-to-Brazil freight rates climbed from roughly $6,500 to $7,500 per FEU over the course of August, while stronger offers from China and Egypt added further support. Unlike the broader market, Brazil's PP import market was driven primarily by freight and offer dynamics rather than by the feedstock cycle affecting the rest of the world.

Key Grade Performance: rLDPE and rPET

rLDPE Market — the most stable grade in the recycled complex Recycled LDPE has now gone three consecutive weeks without a single price change, making it the most stable grade in the recycled complex this month. This stability stood out against the virgin side, where LDPE softened in Europe over the same period and only firmed in China on futures-market activity. Why it matters: for buyers, this unusual stability has made recycled LDPE easier to use as a short-term pricing reference. However, the flat pricing also suggests that the grade has not yet reflected the volatility seen on the virgin side.

rPET Market — bales pulled pellet prices down Recycled PET was the main recycled grade to move this week. Feedstock bale prices began to decline, pulling pellet prices lower. The Brazilian rPET market also slowed after two weeks of gains, when strong domestic demand had supported prices. The US rPET market showed a similar slowdown. Why it matters: the bale-led decline is an early signal that deserves monitoring rather than confirmation of a sustained downward trend. Buyers assessing rPET on a landed-cost basis should watch whether the pellet-side decline continues, particularly in Brazil, where demand had been strong earlier in August.

Key Company, Trade and Regulatory Updates

Brazil — Foreign Trade Committee to review US PE anti-dumping measure on August 27. According to the current regulatory calendar, Brazil's Foreign Trade Committee (Camex) is scheduled to review the anti-dumping measure on US-origin polyethylene on August 27, 2026. Buyers and sellers with exposure to Brazilian PE trade flows should watch for the outcome, since a change to the measure would directly affect the economics of US-origin material into Brazil.

North/West Africa — Jeddah port congestion is rerouting vessels and adding a freight premium. Jeddah port congestion is now causing vessels to reroute through Khor Fakkan and Sohar. The resulting disruption is reportedly adding a premium of approximately $100/mt to North African cargoes compared with West African material.

Market Takeaway

For the week ending August 24, the defining feature of the market was a role reversal in volatility: virgin PE and PP, which had driven momentum for most of the month, lost ground once buyers stopped confirming sellers' higher offers, while most recycled grades remained flat for a third consecutive week. The one exception to both patterns was Brazil's PP import market, which continued to rise on freight and offer dynamics that were regional rather than global. With virgin prices now easing from their peak, the virgin-recycled gap is narrowing — and the key question for September is whether seasonal demand, if it materializes, will finally give recyclers a reason to move.

September watch: will seasonal demand finally move recycled markets, and will Brazil's August 27 anti-dumping review reshape the PE trade picture?

Regenport will continue tracking both the weekly detail and the broader monthly arc as the picture develops into September.

Frequently Asked Questions

Why did virgin PE and PP prices lose momentum in late August 2026? Virgin PE and PP had risen through the first half of August on higher monomer costs, Rhine-related European supply disruption, and Middle East-driven crude volatility. During the week of August 17–24, however, buyers did not confirm sellers' higher offers through completed transactions, causing most of the remaining upward momentum to disappear.

Why is Brazil's PP import market still climbing while the broader virgin market has rolled over? Brazil's PP import market continued to rise for a third consecutive week because Asia-to-Brazil freight increased from roughly $6,500 to $7,500 per FEU during August, while offers from China and Egypt remained firm. The Brazilian market was therefore responding more to freight and supplier offers than to the feedstock cycle affecting the broader virgin PE/PP complex.

Have recycled plastic prices reacted to August 2026's virgin market volatility? Most recycled PE and PP grades showed no meaningful price reaction to August's virgin-market volatility and remained broadly flat for a third consecutive week. Recycled LDPE was unchanged for three consecutive weeks, while recycled PET moved lower as feedstock bale prices declined.

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