Asia’s rPET Flake Prices Slide in H2 on Weak Demand, Growing Supply
Asia’s recycled polyethylene terephthalate or rPET flake prices continued to soften through the second half of 2025 amid weakening downstream demand and gradually improving availability of post-consumer PET bottle feedstock, industry sources said.
OPIS-assessed premium rPET flake prices declined to $795.71/mt on Dec. 18, down $159.29/mt from $955/mt on May 8, representing a decline of nearly 16.7%, OPIS data showed. Regular rPET flake prices followed a similar downtrend, falling to $744/mt from $900/mt over the same period, reflecting broadly bearish market fundamentals across Asia.
The sustained price pressure reflected subdued buying interest across both packaging and textile sectors. Converters and brand owners largely maintained cautious, hand-to-mouth procurement strategies amid a period of soft end-user demand. Several buyers had announced reductions in recycled-content targets earlier in the year, reducing purchases of both premium and regular-grade materials.
During the early summer months, pricing for both flake grades remained relatively stable. Premium flakes fluctuated between $959/mt–$964/mt in June and early July, while regular flakes ranged from $885/mt–$898/mt. However, prices began to fall sharply from mid-July, as supply conditions improved and buyers scaled back purchases.
By mid-August, premium flakes had dropped to $911/mt, while regular flakes declined to $862/mt–$863/mt. The downtrend continued into October, with premium flakes trading at $821/mt–$827/mt and regular flakes hovering around $774/mt–$795/mt, according to OPIS data.
The spread between premium and regular flakes narrowed throughout the second half of the year, signaling weakening demand for higher-specification material. In May and June, the premium for high-quality clear flakes averaged roughly $55/mt–60/mt, but by December, the differential had compressed to about $45/mt–$50/mt as buyers resisted paying elevated prices amid squeezed margins. This narrowing spread also reflected the fact that buyers were reducing the amount of recycled content in their products and substituting this with virgin PET.
The decline in Asia’s rPET flake prices was further compounded by external market pressures, including U.S. import tariffs and lower crude oil prices. Higher tariffs on rPET flakes to the U.S. reduced demand for higher-priced flakes, limiting buyers’ willingness to pay premium levels. At the same time, falling oil prices throughout the second half of 2025 lowered virgin PET production costs, making virgin resin more competitive relative to recycled material. This combination of weaker export demand and cheaper alternatives put additional downward pressure on both premium and regular rPET flake prices in Asia.
In addition, Asia’s rPET markets were affected by regulatory uncertainty in India, where the absence of strict enforcement for missing post-consumer recycled content targets continued to weigh on demand. Despite government mandates requiring beverage and packaging companies to incorporate a certain percentage of rPET in their products, non-compliance has largely gone unchecked, leading many converters to delay or scale back purchases of premium flakes. This regulatory gap, combined with cautious buyer sentiment elsewhere in the region, further contributed to downward pressure on both premium and regular rPET flake prices throughout the second half.
Market participants attributed the decline to multiple factors. Competition among recyclers for premium export-quality flakes intensified, applying additional downward pressure on prices. Some facilities shifted focus to pellet production, capturing higher margins in that segment, but ample flake supply kept market conditions soft.
Southeast Asian markets followed a similar pattern. Sellers reported slower buying interest, particularly for premium flakes destined for food-grade applications. Buyers remained cautious, limiting purchases to immediate requirements as inventories at converters and brand owners were already sufficient. Regular flakes experienced relatively steadier demand, benefiting from lower prices and flexibility for non-food applications, which helped prevent even steeper declines.
The downward trend also coincided with broader seasonal and logistical factors. PET bottle collection rates improved gradually across China, Indonesia, and Thailand, increasing the feedstock available to recyclers. However, year-end collection cycles slowed slightly due to seasonal fluctuations and holidays, while shipping and transportation costs remained elevated, contributing to some localized supply tightness but insufficient to support prices.
Despite the broad weakening, market participants noted some stabilization toward the end of the year. Premium flake prices held in the $795/mt–$810/mt range in November and December, while regular flakes traded in the $740/mt–$757/mt range. Sources said recyclers had adjusted operating rates and procurement strategies to protect margins, contributing to a slowing downward trend.
Any potential rPET price recovery will likely hinge on a rebound in packaging demand and stronger enforcement of recycled-content mandates across China and Southeast Asia. Structural supply conditions, particularly the continued availability of post-consumer bottles and operating rates at recycling plants, will remain a key determinant of pricing for both premium and regular flakes.
While premium flakes retain some resilience due to sustained requirements in food-grade applications globally, the broader market is expected to remain subdued, according to market sources. Buyers and recyclers are adopting a cautious approach, balancing procurement against potential margin pressure.
Overall, Asia’s rPET flakes market in the second half of 2025 was characterized by falling prices, narrowing premiums, and improving supply, with both premium and regular grades reflecting the same fundamental pressures. Any meaningful recovery will depend on stronger demand signals from packaging and textiles, as well as continued enforcement of recycled-content mandates in the region.
–Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com