China’s rPET Prices Stable as vPET Falls on US-Iran Deal: Sources

China’s recycled polyethylene terephthalate bale and flake prices have been largely stable this week, even as virgin PET prices declined following news of the U.S.-Iran agreement, market participants said.

According to OPIS data, prices for bales with labels were assessed at $545–$575 per metric ton, while bales without labels were heard at $750–$775/mt, unchanged from the previous week. AAA-grade rPET flake prices were also stable, ranging from $920/mt to above $1,000/mt.

Market participants noted that vPET prices softened after the memorandum of understanding between the US and Iran was announced, which eased concerns over crude supply disruptions and placed downward pressure on virgin resin benchmarks. However, bottle bale prices held steady due to ongoing seasonal supply constraints, with recyclers citing slower collection rates during the rainy season.

“Virgin prices dropped after the news of the agreement between the US and Iran was released,” a China-based seller said. “Bottle bale prices are stable for now due to the rainy season.”

Sources explained that the recycled market tends to react more slowly than the virgin resin market, as collection and processing cycles delay immediate price adjustments. However, they expect flake prices to gradually soften in the coming days if weaker vPET prices persist, though declines are unlikely to be as immediate or sharp as those seen in the virgin sector.

Meanwhile, demand for rPET flakes remained largely unchanged, with buyers continuing to purchase on an as-needed basis amid weak downstream demand.

Market participants expect China’s rPET market to remain stable in the near term, though persistently low virgin resin prices may eventually drag rPET flake prices down if downstream demand fails to improve.

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