China rPET Bale Prices Rise as Oil Volatility Lifts Costs: Sources

China’s recycled polyethylene terephthalate or rPET bale prices increased this week, supported by tighter feedstock availability and higher cost pressures linked to oil price fluctuations, according to market participants.

According to OPIS data, prices for bales with labels rose to $550-$590 per metric ton on April 28 from $530-$560/mt on April 22, while prices for bales without labels remained at $750-$830/mt, reflecting stronger competition for cleaner feedstock and limited bottle collection volumes. The range for rPET flake prices increased by $10, moving to $920/mt to above $1,000/mt, as recyclers maintained offer levels despite cautious downstream demand.

“Increased bale prices could be caused by the oil price fluctuation,” a China-based recycler said, adding that higher energy costs have increased expenses across collection, processing and transportation.

Market participants noted that crude-linked volatility has continued to lift diesel, freight and utility costs, raising operating costs for recyclers and supporting firmer bale procurement prices.

However, overall buying sentiment remained cautious, with buyers continuing to purchase on a hand-to-mouth basis amid high price levels and uncertain downstream order visibility.

Looking ahead, market participants expect China’s rPET market to remain firm in the near term as bale collection remains tight, while continued oil price volatility could further lift virgin PET benchmarks and reinforce demand for recycled materials as a cost-competitive alternative.

—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com