Southeast Asia’s rPET Prices Rally Ahead of Spring Festival
Recycled polyethylene terephthalate or rPET premium flakes and bale prices across Southeast Asia have strengthened sharply in the lead-up to the Spring Festival, as seasonal restocking and firm downstream packaging demand due to increased virgin PET pushed the regional market higher.
OPIS data shows that average prices for rPET premium flakes in the region have risen steadily, from $808.57 on Jan. 15 to $811.43 per metric ton on Feb. 5. Over the same period, the prices for bales with labels in China rose from $480 to $510, while prices for bales with labels in Indonesia rose from $231.05 to $ 242.97. The prices for bales without labels in Malaysia rose from $445 to $465, and prices for bales without labels in China rose from $545 to $592.50 during the same period.
The increase in rPET prices in Southeast Asia was supported by heightened buying interest from food and beverage producers seeking to secure volumes ahead of the holiday slowdown, alongside increased prices in virgin PET, driven by holiday-related supply tightness, reduced PTA capacity and price adjustments. Sources in Thailand reported more serious enquiries from Chinese buyers, with negotiations focused on securing larger volumes, adding to regional buying momentum.
According to regional sources, buying momentum accelerated through late January as producers sought to build inventories before logistics constraints and plant shutdowns associated with the Spring Festival began to tighten availability. In China, most PET bottle balers have started their holidays, and many waste collection stations have also stopped accepting plastic waste. Work is only expected to resume after the holidays end on March 3.
Supply-side conditions also contributed to the bullish tone. While collection rates improved marginally in parts of Southeast Asia, the availability of high-quality post-consumer PET bottles remains constrained, particularly for clear feedstock suitable for food-grade applications. This tightening in feedstock supplies enabled recyclers to pass through higher prices.
Improving logistics within Southeast Asia helped alleviate some supply pressure, with smoother cross-border movements supporting material flows to end users. However, market participants cautioned that shipping delays and labor shortages during the holiday period could still disrupt supply chains and sustain price volatility.
Market sources expect rPET prices in Southeast Asia to remain firm through the Chinese New Year period, supported by restocking activity and demand. Post-holiday price direction will likely hinge on the pace of demand normalization and the speed at which collection and recycling operations resume.
Minimal Impact in Europe
On the other hand, recycled plastics markets in Europe remain largely insulated from the seasonal dynamics seen in Asia. For recycled plastics traders in Europe, any impact from the Spring Festival holiday has already been factored in, with market participants reporting minimal disruption to both supply and pricing. Many indicate that logistics, production schedules and inventory levels had been adjusted well ahead of the holiday period, allowing market activity to continue with little interruption.
Sources told OPIS that trade flows of recycled plastics from China into Europe are limited, significantly reducing the potential for spillover effects. As a result, the Spring Festival has not triggered any notable volatility in the European recycled plastics market. It is also not expected to materially influence supply-demand dynamics in either recycled or virgin polymer markets, with sentiment suggesting the event is unlikely to cause price shocks.
—Reporting by Xin Nee Chua, xchua@opisnet.com and Ellis Nicoll, enicoll@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com