China’s PET Bale Prices Extend Decline on Improved Bottle Supply: Sources

China’s polyethylene terephthalate or PET bale prices declined for a second consecutive week, while flake prices remained stable, as improved bottle collection rates continued to increase feedstock availability during the summer season, according to market sources.

According to OPIS data, prices for bales with labels fell to $545-$575 per metric ton from $550-$575/mt in the previous week. Prices for bales without labels were unchanged at $750-$775/mt. Premium recycled PET or rPET flake prices remained stable at $920/mt to above $1,000/mt, as recyclers continued to maintain offer levels despite cheaper bale procurement costs.

Market sources said warmer weather and increased beverage consumption have boosted bottle collection volumes in recent weeks, improving feedstock supply and reducing competition among recyclers for available bales. The increase in collection rates has primarily affected labeled bales, where supply has become more readily available compared with earlier in the year.

At the same time, prices for bales without labels remained supported by steady demand from recyclers seeking cleaner feedstock with higher yield efficiency and lower processing costs. Demand for rPET flakes has also remained relatively unchanged, with buyers continuing to purchase cautiously in smaller amounts amid economic uncertainty.

Market sources added that stable virgin PET prices and persistent volatility in energy markets have helped support flake prices, preventing downward pressure from spreading further into the recycled resin market.

Sources expect bale prices to continue to fall if collection volumes continue to improve during the summer months, although flake prices may remain relatively stable as long as operating costs and virgin resin prices stay stable.

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