Asia rPET Stable as Rising vPET Prices Lift Sentiments Despite Weak Demand: Sources
Asia’s recycled polyethylene terephthalate or rPET market remained largely stable this week, with buying interest continuing to be restrained by weak downstream demand. However, recent increases in virgin PET or vPET prices could provide support to recycled resin values after two weeks of price declines, according to market sources.
According to OPIS data, regular-grade rPET flakes at $850 per metric ton, unchanged from the previous week but $12/mt lower than four weeks ago. Premium-grade flakes fell $5.71/mt from last week to $928.57/mt, extending their four-week decline to $17.14/mt. rPET pellets were assessed as unchanged at $1,158/mt, although prices remained $39/mt below levels seen a month earlier.
Market sources said trading activity was quiet, with most buyers purchasing only to meet immediate production requirements rather than rebuilding inventories. Demand for recycled packaging materials remains soft, while buyers continue to monitor the direction of both virgin and recycled PET markets.
“We didn’t buy any bales or flakes this week, because our warehouse is fully stocked,” said a China-based converter.
Market sources added that in countries without mandatory recycled-content legislation, buyers have continued to favor lower-cost vPET whenever pricing becomes more attractive. The absence of regulatory requirements has made voluntary demand for recycled material highly price sensitive, limiting any meaningful recovery in rPET consumption despite recent price corrections.
“Demand is still quiet. Buyers are only purchasing what they need, and where there is no recycled-content requirement, many will choose the cheaper virgin material,” an Indonesian recycler said. “Sustainability has taken a back seat.”
Despite the lackluster demand, sentiment improved slightly this week after vPET prices moved higher, supported by renewed geopolitical tensions in the Middle East that raised concerns over feedstock and energy costs. Several recyclers said the increase in virgin resin prices could help stabilize the recycled market.
“The virgin price has continued to rise this week, and this may lead to a slight increase in the price of recycled plastics in the future,” another China-based seller said.
Even so, market sources cautioned that stronger virgin prices alone are unlikely to trigger a significant recovery in rPET demand. Buyers are expected to remain cautious until downstream consumption improves or regulatory measures requiring recycled content become more widespread globally.
For now, market sources expect the rPET market to remain balanced but subdued, while they keep a close lookout as to whether firmer vPET prices can provide stability for recycled plastics in the coming weeks.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com