China’s rPET Bale Prices Rise on Forex Movements; Demand Remains Stable: Sources

China’s recycled polyethylene terephthalate or rPET bale prices have edged higher this week, supported by foreign exchange movements, while flake prices remained stable on steady market demand, market sources said.

According to OPIS data, prices for bales with labels were assessed at $545-$575/mt, while bales without labels rose from $670-$715/ mt to $670-$718/mt, slightly higher on the week. Premium-grade rPET flake prices were unchanged at $920-$980/mt.

Market sources said the increase in bale prices was largely driven by foreign exchange fluctuations rather than stronger demand.

“Prices rose as the exchange rate changed,” said a China-based seller. “The market remains stable, however.”

A stronger Chinese yuan against the U.S. dollar prompted suppliers to adjust their dollar-denominated offers higher to preserve margins, although domestic trading conditions remained largely unchanged.

The source added that downstream customers continued to make necessary purchases of both virgin and recycled PET, with buying activity remaining focused on immediate production requirements.

Looking ahead, market participants expect China’s rPET market to remain steady. While foreign exchange movements may continue to influence export offer levels, market sources said any significant change in rPET prices will likely depend on shifts in virgin PET values and downstream demand.

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