China’s Labeled PET Bale Prices Rise Amid Disrupted Bottle Collection: Sources
Prices of China’s polyethylene terephthalate or PET bales with labels increased this week as rainfall across several parts of the country disrupted bottle collection and tightened feedstock availability, according to market sources.
According to OPIS data, prices for bales with labels were assessed at $535-$590/mt, up $10/mt from $535- $580/mt the previous week, while bales without labels remained at $660-$700/mt. Premium-grade recycled PET or rPET flake prices remained at $920-$980/mt over the same period.
Market sources said persistent rainfall in several locations across China has made bottle collection and transportation more difficult, limiting the amount of post-consumer PET reaching recycling facilities.
The tighter collection conditions have particularly supported labeled bale prices, as recyclers compete for available feedstock to maintain operating rates. Collectors have also faced greater logistical difficulties in moving bottles during periods of heavy rain.
Despite the increase in labeled bale prices, demand for finished rPET material remained relatively muted. Flake prices were therefore largely unchanged, with buyers continuing to purchase mainly according to immediate production requirements.
“Bale prices went up because it’s been raining in many places, said a China-based seller. “Demand continues to remain stable, but soft.”
Market sources said the weather-related tightening in bottle availability has increased procurement costs for some recyclers, although sellers have been reluctant to make significant adjustments to flake offers while downstream demand remains cautious.
The market is also being closely watched for movements in virgin PET prices, which continue to influence converters’ purchasing decisions and the relative competitiveness of recycled material.
Market sources expect China’s bales to remain sensitive to weather conditions, with continued rainfall potentially restricting collection and supporting feedstock prices. Flake prices, however, may remain more stable unless higher bale costs are accompanied by stronger downstream demand.
—Reporting by Xin Nee Chua, Xin.Chua@dowjones.com ; Editing by Mei-Hwen Wong, mei-hwen.wong@dowjones.com