Asia rPET Prices Up in Q1 on Holiday Disruptions, Mandates, Mideast Conflict
Asia’s recycled polyethylene terephthalate or rPET prices have strengthened since January, supported by seasonal supply disruptions in February and stronger compliance-driven demand in March amid rising cost pressure linked to the ongoing Middle East conflict, market sources said.
According to OPIS assessments, regular rPET flake prices rose to $766.50 per metric ton in March from $749.50/mt in February, while premium flake prices climbed more sharply to $847.40/mt from $809.11/mt. rPET pellet prices have also increased, to $1,148.25/mt in March from $1,117.50/mt the previous month. January assessments stood at $751.50/mt for regular flakes, $808.22/mt for premium flakes and $1,122.00/mt for pellets.
Market participants said February pricing dynamics were influenced heavily by the Spring Festival holiday period in China, which disrupted bottle collection flows and slowed logistics movements across the region. Several recyclers operated at reduced rates, while downstream buyers delayed purchases ahead of the holiday, limiting spot activity.
Despite the softer demand environment in February, bale procurement costs remained firm due to reduced feedstock availability, preventing flake prices from declining meaningfully. Market sources said supply-side tightness continued to provide support for recycled material prices.
In March, the market shifted as buyers returned after the holiday period and regional demand improved, particularly from buyers seeking to secure supply in anticipation of tighter compliance requirements in India. Several sources noted that legislation-driven demand became more visible, as brand owners and packaging producers increased procurement to meet recycled content targets.
At the same time, higher virgin PET or vPET prices strengthened rPET’s competitiveness, allowing recyclers to raise offers for premium flakes and pellets. Market sources said the widening cost base in virgin resin markets has kept recycled material pricing firm, particularly for high-quality grades used in packaging and fiber applications.
War-driven volatility also played a key role in March price strength, as crude oil fluctuations lifted diesel, freight and utility costs across Asia. Market sources said higher energy and transportation costs increased the cost of collecting and moving post-consumer bottles, contributing to stronger bale and flake pricing.
Several recyclers said the cost impact was particularly evident in pellet markets, where additional processing requirements and higher operating costs have led producers to raise offers more aggressively compared with flake grades.
However, some market sources noted that demand remains uneven across Asia, with buyers still cautious at higher price levels. Several buyers continued to purchase on a hand-to-mouth basis, citing uncertainty in downstream order flows despite regulatory pressure in certain countries due to the absence of enforcement by the local authorities.
Market sources expect Asia’s rPET market to remain firm in the near term, as legislation-driven procurement and elevated upstream cost conditions continue to provide structural support, though further price gains will depend on the pace of demand recovery and feedstock availability across the region.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com