China’s rPET Flake Prices Steady Amid Cooler Weather, Rising vPET: Sources
Recycled polyethylene terephthalate premium flake prices in China were stable for the second consecutive week, following earlier increases attributed to declining temperatures across different regions, while rising virgin PET prices have provided additional support to the recycled material market.
According to OPIS data, prices for bales with labels were assessed at $640.4750 per metric ton as of the week ended Oct. 16, up from $557.3650/mt the previous week. Bales without labels were heard at $692.2700/mt, up from $615.7450/mt and premium grade rPET flake prices remained at $950-$1,040/mt over the same period.
Market sources attributed the increases in recycled material prices to falling temperatures across China, with seasonal changes influencing conditions in the domestic PET recycling market.
Cooler weather typically coincides with lower beverage consumption, which can reduce the volume of post-consumer PET bottles entering collection and recycling channels. The seasonal reduction on collection volume increased procurement competition among recyclers seeking to secure sufficient feedstock, driving up bale prices despite stable downstream rPET flake prices.
Despite the earlier upward movement, prices across the flakes have remained unchanged over the past two weeks, indicating a period of price stability as temperatures continue to decline across different parts of the country.
Meanwhile, rising vPET resin prices have introduced another consideration for domestic recycled material buyers, as higher virgin resin costs can affect the relative price competitiveness of rPET.
The increase in vPET prices narrows the price differential between virgin and recycled material, making recycled alternatives more attractive to downstream manufacturers where product specifications allow substitution.
On the feedstock side, bottle bales without labels continued to command higher prices than labeled material, reflecting differences in material preparation and processing requirements.
The combination of declining temperatures and rising vPET prices has brought attention to both feedstock availability and the relative competitiveness of recycled material, although neither factor has resulted in further increases in the reported rPET prices over the past two weeks.
Market sources continue to monitor seasonal temperature changes and vPET price movements for indications of potential adjustments in domestic rPET pricing.
For now, China’s rPET market remains stable following earlier gains, with price movements dependent on developments in feedstock availability, vPET prices and downstream purchasing activity.
–Reporting by Xin Nee Chua, Xin.Chua@dowjones.com; Editing by Mei-Hwen Wong,
mei-hwen.wong@dowjones.com