Asia’s rPET Demand Subdued Despite Lower Prices: Sources
Demand for recycled polyethylene terephthalate or rPET in Asia remains muted this week despite prices falling for a second consecutive week, as buyers in countries without mandatory recycled content requirements continue to favor cheaper virgin material.
According to OPIS data, rPET regular flakes fell from $862 per metric ton on July 9 to $858/mt on July 16, while premium flakes fell from $939.99/mt to $934.29/mt. rPET pellets fell from $1,181/mt to $1,158/mt over the same time period.
Market sources said buying interest remains limited, with many buyers purchasing only on required basis amid weak downstream demand and expectations that virgin PET prices could decline further.
“Lower prices have not translated into stronger demand. Buyers are still very cautious and are only covering immediate needs,” a Malaysian seller said.
Market sources said demand has been particularly weak in countries where there are no legislative requirements mandating the use of recycled content in plastic packaging. In such markets, buyers are prioritizing cost competitiveness and increasingly opting for lower-priced virgin PET or vPET over recycled alternatives.
“In countries without mandatory recycled content regulations, buyers will naturally choose the cheaper option. Sustainability targets alone are currently insufficient to drive significant demand,” an Indonesian recycler said.
The decline in vPET prices in recent weeks has further pressured the recycled market, narrowing the price differential between virgin and recycled materials and reducing incentives for voluntary rPET adoption.
Export opportunities also remained limited, with elevated freight rates and slow overseas demand continuing to weigh on regional recyclers.
Market sources said buyers remain reluctant to build inventories amid uncertainty surrounding the direction of virgin resin prices and end-user demand.
Sources expect demand to remain subdued in the near term, particularly in non-regulated markets, unless stronger policy support emerges or downstream consumption improves.
“Buyers worldwide continue to push for price reductions, as oil prices have softened and virgin PET prices have declined significantly,” said an Indonesia-based seller. “This pressure is naturally being passed through to the recycling market.”
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com