China rPET Stable, Labeled Bale Prices Weaken for Second Week
China’s recycled polyethylene terephthalate or rPET flake and bale prices have been largely stable this week, although bale prices with labels declined due to weaker demand for lower-grade feedstock, market participants said.
Market sources said labeled bale prices eased from the previous week as buyers became increasingly selective amid high processing costs and lower yield efficiency. In contrast, prices for bales without labels remained firm, supported by tighter availability of cleaner feedstock.
According to OPIS data, rPET bale-without-label prices were stable for the second week running, as demand remained consistent for higher quality bales. The prices for bales without labels remained at $750-$850 per metric ton on April 22, while those for bales with labels fell to $530-$560/mt from $565-$575/mt over the same period. rPET premium flakes remained at $930-$1,000/mt over the same period as recyclers maintained offer levels amid higher procurement and operating costs.
Market participants said higher virgin PET prices continued to provide some cost support for recycled material, limiting downside pressure despite muted demand.
However, overall buying sentiment remains cautious, with buyers continuing to purchase on a hand-to-mouth basis. Several buyers said high price levels have reduced the willingness to commit to large volumes.
Recyclers said that demand for labeled bales weakened because some processors shifted procurement toward cleaner bales to reduce washing and sorting costs.
Market participants expect China’s rPET market to remain stable in the near term, though labeled bale prices may continue to face pressure if demand for lower-grade feedstock remains weak. Sellers are hopeful that the ChinaPlas conference this week will help stimulate negotiations and facilitate contract discussions, as buyers and sellers use the event to reassess procurement strategies amid existing uncertain market conditions.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com