Thailand’s rPET Prices Rise on Mideast-Linked Cost Pressures
Thailand’s recycled polyethylene terephthalate or rPET bale, flake and pellet prices have climbed this week, driven by higher virgin PET or vPET prices, tight feedstock availability and collection challenges that have constrained plant operations, market participants said.
According to OPIS data, prices for bales with labels rose from $378.32 per metric ton on March 19 to $401.72/mt on March 26. RPET premium flake prices rose from $760/mt- $850/mt to $800/mt-$860/mt, regular flakes rose from $710/mt-$770/mt to $750/mt-$820/mt, and pellets rose from $1,150/mt-$1,130/mt to $1,200/mt-$1,400/mt over the same period.
Market participants said higher vPET prices and force majeure declarations in regional petrochemical operations have encouraged converters to consider recycled plastics as a replacement, boosting demand for higher-quality flakes.
“Feedstock collection is slowing, and companies have been instructed to reduce office attendance,” a Thailand-based seller said. “Some plants may even have to halt production if bottle supply continues to tighten.”
Rising diesel and transportation costs linked to global energy volatility have added upward pressure on operational expenses, further supporting rPET pricing. Several recyclers said they are attempting to pass these costs through to buyers, though caution among downstream converters is limiting the pace of purchasing.
Thailand is a key regional supplier of rPET to neighboring markets, including Vietnam, Malaysia and Indonesia. Buyers in these countries are watchful, according to industry sources, closely monitoring Thailand’s domestic price movements before committing to larger volumes.
Looking ahead, market participants said buyers are concerned that ongoing collection shortages, potential plant stoppages and volatile virgin resin prices could support firm rPET pricing. Even as domestic demand remains supportive, uncertainty over feedstock availability and operating restrictions may continue to influence market sentiment and purchasing strategies in the near term.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com