China’s rPET Flake Prices Rise as Cooler Weather Tightens Supply: Sources
Recycled polyethylene terephthalate or rPET flake prices in China have risen as temperatures decline across different regions, with seasonal changes affecting the availability and collection of post-consumer PET bottle feedstock, according to market sources.
According to OPIS data, prices for bales with labels were assessed at $557.3650 per metric ton as of the week ended Oct. 9, up from $540.0475/mt the previous week. Bales without labels were heard at $615.7450/mt, up from $609.7900/mt and premium grade rPET flake prices increased to $950-$1,040/mt from $930 – $1,015/mt over the same period.
The price increases come as cooler temperatures begin to affect PET bottle collection activities across parts of China. Seasonal declines in beverage consumption typically reduce the volume of discarded PET bottles entering recycling channels, limiting feedstock availability for recyclers.
“Prices have risen as the temperatures drop in different regions,” said a China-based seller. “Bales cost rose in return, which drives up the prices for flakes.”
The tightening availability of bales has placed upward pressure on procurement costs, with recyclers facing higher input prices to secure sufficient material for processing.
The price differential between bales with labels and bales without labels also reflects differences in feedstock quality and processing requirements, as cleaner material generally requires less sorting and preparation before recycling.
However, the extent to which higher feedstock costs can be passed on to downstream buyers remains dependent on demand for recycled flakes, with market sources continuing to monitor purchasing activity and seasonal supply developments.
Further temperature declines across China could add pressure to feedstock collection and availability in the coming weeks, potentially providing additional support to domestic rPET flake prices.
–Reporting by Xin Nee Chua, Xin.Chua@dowjones.com; Editing by Mei-Hwen Wong,
mei-hwen.wong@dowjones.com