China rPET Prices Fall Further as Lower Virgin PET Weighs on Demand: Sources

China’s recycled polyethylene terephthalate or rPET flakes and PET bale prices declined further this week, as weaker virgin PET or vPET prices and slow downstream demand continued to pressure the recycled market, market sources said.

According to OPIS data, prices for bales with labels were assessed at $545-$575 per metric ton, largely unchanged from the previous week, while bales without labels fell to $680-$715/mt from $710-$755/mt. Premium-grade rPET flake prices also fell to $920-$980/mt from above $1,000/mt previously.

Market sources said falling crude oil prices have continued to weaken vPET values, narrowing the spread between virgin and recycled material and reducing rPET’s cost competitiveness.

Sources noted that lower virgin resin prices have prompted some buyers to shift procurement back to vPET, particularly in applications where recycled content requirements are less strict.

“The price of virgin PET dropped significantly last week. This has affected our rPET prices,” said a China-based seller.

At the same time, supply for bales has improved due to seasonal summer collection, increasing feedstock availability and easing procurement pressure among recyclers.

Flake prices also came under pressure this week, as softer bale costs and weak downstream buying interest forced some sellers to lower offers.

Market sources said demand for rPET remains sluggish, with buyers continuing to purchase on a hand-to-mouth basis amid uncertain order visibility and weaker sentiment across packaging and textile sectors. Most buyers continue to prefer to wait before committing to larger orders.

Sources expect China’s rPET market to remain under pressure in the near term if vPET prices continue to weaken and downstream demand fails to recover.

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