China’s rPET Flake, Bale Prices Rise for Second Week Running
China’s recycled polyethylene terephthalate or rPET premium flake and bale prices increased for a second consecutive week as higher virgin PET prices and pre-Spring Festival restocking lifted near-term demand, market participants said this week.
According to OPIS data, rPET premium flake prices rose from $740-$820 on Jan. 15 to $760-$830 on Jan. 27. The prices for bales with labels rose from $470-$490 to $500-$520, while those for bales without labels rose from $530-$560 to $575-$610 over the same period.
The increase reflected a broad improvement in market sentiment across the PET value chain, with higher vPET prices prompting converters and fiber producers to increase interest in recycled material. Buyers were also actively securing volumes ahead of the Chinese New Year holiday, when logistics disruptions and plant shutdowns typically tighten spot availability.
China rPET flake prices have climbed steadily over the past two weeks, tracking the upward momentum in vPET. Since early January, vPET prices have risen on the back of higher feedstock costs, widening the price differential between virgin and recycled materials and encouraging greater rPET usage in packaging and textile applications, a recycler said.
“This month’s spread between virgin and recycled PET in China increased to 1,300 yuan ($186), up by 300 yuan ($43) from December,” said Winda Yu, senior research analyst at Chemical Market Analytics by OPIS, said. “This is a good sign for the rPET market.”
Seasonal factors have further amplified the price momentum. Pre-Chinese New Year stocking has accelerated across downstream sectors, as buyers aim to minimize procurement risks during the extended holiday period.
According to market sources, enquiries for premium rPET flakes have increased notably to lock in supplies before the holiday. “The main driver behind such movement seems to be tightened vPET supply prior to the Chinese New Year,” a recycler said.
Supply fundamentals remain broadly balanced, but production costs continue to remain firm, although feedstock costs continue to increase. Recyclers reported elevated post-consumer bottle collection costs due to cold weather and impending holidays, limiting flexibility and reinforcing higher offer levels. “With Chinese New Year around the corner and snowing in many places in China, the consumption of (cold) beverages decreases, causing the prices of bales to increase,” said a China-based seller.
While the recent rally has been underpinned by stronger vPET prices and pre-holiday demand, market participants cautioned that momentum may ease after CNY. Buying interest typically slows as downstream plants draw down inventories and gradually resume operations following the holiday.
For now, the market remains hopeful, with higher virgin resin prices and seasonal restocking continuing to support China’s rPET flake market heading into the holiday period.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com