China’s rPET Prices Firm Despite Volatile vPET Market: Sources
China’s recycled polyethylene terephthalate or rPET bale and flake prices rose this week, despite volatility in the virgin PET or vPET market, where prices initially increased before retreating at the start of the week, market sources said.
According to OPIS data, prices for bales with labels were assessed at $545-$575/mt, while bales without labels remained at $680-$715/mt. Premium grade rPET flake prices were heard at $920-$980/mt, similar to the previous week.
Market sources said the earlier increase in vPET prices had initially supported sentiment in the recycled market, prompting sellers to raise offers in line with higher virgin resin values. However, vPET prices subsequently softened at the beginning of the week, reflecting cautious buying sentiment across the polyester chain.
“Following the virgin trend, rPET prices declined early last week, then rose, so the price range is similar to (the one) early last week,” said a China-based seller.
Several recyclers noted that despite the pullback in virgin prices, rPET values have remained relatively firm due to recyclers’ reluctance to reduce offers further after previous weeks of declines.
At the same time, downstream demand for recycled material remains subdued, with buyers continuing to purchase only when required, amid uncertain order visibility and expectations of further movements in virgin resin prices.
Market sources added that bottle supply remains relatively comfortable, preventing significant upward pressure on bale procurement costs.
The recent volatility in the virgin market has increased caution among both buyers and sellers, with many preferring to wait for clearer pricing direction before committing to larger volumes.
Market participants expect China’s rPET market to be largely stable in the near term, with pricing likely to continue tracking movements in the vPET and crude oil markets.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com