APAC, EU rPET Prices Rise as Middle East Tensions Disrupt Supply Chains
Recycled polyethylene terephthalate or rPET premium flake and bale prices across the Asia Pacific and Europe are facing mounting pressure following the escalating Middle East conflict, as rising energy costs, feedstock disruptions and freight volatility reshape market dynamics across both regions.
OPIS data indicates that price movements across APAC have strengthened in recent weeks, with upward momentum building across key markets including China, Indonesia, India, Malaysia and Thailand. In China, premium flakes’ prices increased from around $840-$920 to $850 to-$1000 per metric ton, while Asian markets recorded gains of $10/mt-$50/mt amid tightening supply conditions in the week to March 20. The uptrend has been supported by firmer virgin PET prices and structural supply constraints.
“There is a complete supply chain disruption due to high vPET prices, increasing costs and increasing crude oil prices,” said a Thailand-based seller. “Prices are extremely sensitive now.”
The strengthening trend in APAC rPET markets has been driven primarily by rising upstream costs linked to the Middle East conflict. Disruptions to crude oil and petrochemical flows have pushed feedstock prices higher, particularly for paraxylene and purified terephthalic acid, key inputs in vPET production. vPET prices have risen sharply, improving the relative competitiveness of recycled material and prompting buyers to increase their reliance on rPET despite higher absolute costs. “vPET prices are now above $1,200/mt FOB, and buyers are panicking,” said an Indonesia-based market source. “They are now booking any volume at any cost.”
At the same time, recyclers across the region are facing a broad-based increase in operating expenses. Elevated electricity tariffs and fuel costs have raised processing costs, while higher diesel prices have directly impacted the collection and transportation of post-consumer PET bottles.
Freight and logistics have also emerged as another key pressure point. Shipping routes linking the Middle East to Asia have experienced disruptions and rerouting, leading to higher freight rates, vessel delays and reduced schedule reliability. Market participants report longer lead times for both imported feedstock and exported recycled materials, complicating inventory planning and contract execution.
Supply-side constraints remain a central feature of the APAC market. The availability of high-quality post-consumer PET bottles, particularly clear bales without labels, continues to lag demand across several countries. Seasonal collection fluctuations due to public holidays have also limited the ability of recyclers to scale up production in response to stronger demand. “It is currently holiday season in Indonesia, so there are limited feedstocks for bales until Eid Mubarak ends,” said an Indonesia-based recycler.
Regional trade flows have also begun to adjust in response to the evolving situation. Southeast Asian flake exporters are seeing firmer interest from Northeast Asian countries such as Japan, as domestic supply tightens and buyers seek to secure stable volumes. At the same time, some exporters are becoming more cautious in committing to forward cargoes due to uncertainty over freight costs and delivery timelines.
Despite the overall bullish tone, buying behavior across APAC remains measured. Buyers are showing increased interest in rPET as a hedge against volatile virgin resin prices, but many are limiting purchases to near-term requirements given the uncertain macroeconomic environment.
The rPET market in Europe has also felt the effects of ongoing disruption caused by the conflict in the Middle East. Logistical challenges, including delayed arrivals of shipments as vessels re-route away from the Middle East, coupled with lower inventories across Europe, have resulted in force majeure declarations for some and spurred others to rebuild stocks, generating stronger buying interest.
“The conflict in the Middle East has enhanced issues seen on the market from the previous year,” one recycled plastics trader told OPIS. “The slow market caused delayed restocking activity earlier; producers were already low on inventories. So, now that the supply shock has arrived, everyone is subjected to the consequences of panic buying and increased prices.”
Spot prices for rPET flakes, pellets and bales have risen around €60-100 ($69-115)/mt in the week to March 20, compared to the previous week, according to market sources. Sources claim these increases are a direct result of the volatile market conditions the conflict has caused.
Moreover, market participants have reported that the recycled plastics market has been absorbing some of the pressure for virgin material, with buyers seeking high-quality recycled material as a more accessible and affordable alternative, as soaring crude prices boost costs of virgin materials.
Logistics and trade flows have also come under pressure globally. Disruptions to key shipping routes linked to the Middle East have increased freight costs and reduced schedule reliability, impacting both APAC exports and European imports.
Market sources expect continued volatility in both APAC and European rPET markets in the near term. While elevated virgin PET prices may lend support to recycled material demand, persistently high operating costs, logistical uncertainties and cautious buying sentiment are likely to sustain price volatility in the weeks ahead.
“If vPET and rPET increase, the differentiation will be the supply chain capacity. Recyclers have less power than petrochemicals, and procurement chooses the most cost-effective option,” said Alvaro Aguilar, founder & data lead of Ekologis, head of business development with rPET flakes and pellets manufacturer Polindo Utama. “We are the just-in-case option, rather than the preferred one. The model needs to evolve.”
—Reporting by Xin Nee Chua, xchua@opisnet.com and Ellis Nicoll, enicoll@opisnet.com; Editing by Hanwei Wu, hwu@opisnet.com