China’s rPET Flake, Bale Prices Climb on Wider vPET Spread, Iran Conflict
China’s recycled polyethylene terephthalate or rPET bale and flake prices have increased for a fourth consecutive week, even as the spread between virgin PET and recycled material has widened following the Middle East conflict, market participants said this week.
According to OPIS data, rPET premium flake prices rose from $760-$830 on Feb. 12 to $880-$930 on March 4. The prices for bales with labels rose from $500-$520 to $520-$560, while those for bales without labels rose from $575-$610 to $620-$660 over the same period.
“After the Spring Festival, bottle bale costs increased by about $15 compared with pre-Spring Festival,” a China-based seller said. “Prices are expected to continue increasing after Iran was attacked due to higher energy and transportation costs.”
At the same time, vPET prices have increased faster in recent weeks, widening the spread between virgin and recycled material, according to market participants, and strengthening the competitiveness of rPET across packaging and textile applications. The wider price differential has encouraged converters to evaluate higher recycled content usage where technically feasible.
Several recyclers noted that the improved spread has helped revive near-term interest in rPET flakes following a subdued demand environment since late last year. The firming feedstock environment has also begun to translate into higher offer levels for rPET flakes, particularly for hot-washed clear grades. Sellers said flake prices are expected to move higher in the coming weeks as recyclers attempt to pass through rising bale procurement costs.
Beyond feedstock dynamics, market sentiment has also been influenced by volatility in global energy markets as the conflict involving Iran enters its second week. Although rPET production does not directly rely on petrochemicals, recyclers remain exposed to rising costs for diesel, electricity and transportation.
Market sources said the higher fuel prices resulting from the conflict could lift the cost of collecting and transporting post-consumer bottles, while elevated freight rates may increase export costs for recyclers supplying overseas markets.
China continues to play a central role in regional rPET supply, exporting flakes and pellets to several Southeast Asian markets, including Vietnam, Thailand and Malaysia. Buyers in Southeast Asia reported stable but cautious procurement activity, with some converters monitoring Chinese price movements before committing to larger volumes.
Demand visibility remains mixed across downstream sectors. Beverage packaging and textile fiber producers have resumed operations following the Chinese New Year holiday period, though purchasing strategies remain conservative amid broader economic uncertainty.
Still, participants said the widening price spread between vPET and rPET has provided support for recycled materials, particularly if energy-linked cost increases continue to lift virgin resin benchmarks.
Market participants expect China’s rPET market to remain firm in the near term, supported by rising bottle bale procurement costs, improving flake sales enquiries and the potential for higher operating costs linked to energy market volatility.
However, the pace and extent of further price increases will ultimately depend on downstream demand conditions and the willingness of buyers to absorb higher flake prices as the market adjusts to the post-holiday trading environment. For China’s rPET market, the conflict is unlikely to directly disrupt recycling operations. However, higher fuel, freight and utility costs could tighten margins for recyclers while simultaneously supporting higher bale and flake price levels.
As a result, market participants said the Middle East conflict is emerging as a key external variable shaping near-term price expectations, particularly if energy market volatility continues to widen the spread between vPET and recycled material in the coming weeks.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com