China’s Bale Prices Fall on Improved Supply, Lower Virgin PET Prices: Sources

China’s polyethylene terephthalate or PET bale prices declined this week on improved bottle collection, weaker demand for recycled materials reducing feedstock prices, and falling virgin PET or vPET prices, market participants said.

According to OPIS data, prices for bales with labels were assessed at $545-$575 per metric ton, while bales without labels fell to $710-$755/mt from $750-$775/mt the previous week.

Premium-grade rPET flake prices remained stable from $920/mt to above $1,000/mt, as recyclers maintained offer levels despite softer feedstock costs.

“The demand for recycled materials has not improved, while the supply has increased,” a China-based recycler said.

Market sources said higher bottle collection volumes during the summer season have improved feedstock availability, reducing procurement competition among recyclers and pressuring bale prices lower.

At the same time, weaker vPET prices following lower oil prices have begun to affect buying behavior, as some downstream buyers evaluate a switch back to virgin material.

“With the price of virgin PET having declined, some of the demand for rPET may gradually shift to virgin PET as well,” the recycler added.

Recyclers said the decline in clean bale prices reflected this shift in market sentiment, particularly as the price spread between virgin and recycled material narrowed.

Looking ahead, market sources expect China’s rPET market to remain under pressure in the near term, with further decreases in bale prices if recycled demand remains weak and vPET prices continue to soften.

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