Virgin PET continues to pressure recycled market despite stable imports: sources

Brazil's imports of polyethylene terephthalate resin in September were stable, compared with the year-ago month; but even without a significant increase in volumes, the entry of virgin material at what is described as more competitive prices continues to strongly pressure the recycled market, sources said.

According to data from the Ministry of Development, Industry, Commerce and Services, Brazil imported 6.643 mt of virgin PET in September, an increase of 0.42% from the 2024 month.

Imports from Vietnam, the top supplier so far in 2025, fell by 14%.

A virgin PET trader said Oct. 8 that some of his clients were looking to cancel orders for resin from Vietnam due to fears of the approval of an antidumping duty.

Contacted by Platts on Oct. 10, the MDIC said that the matter is still under analysis, both for material from Vietnam and Malaysia, but did not respond to a request for an estimated timeframe for any decision.

Buyers continue to pressure for virgin resin lower prices, the same trader said, which could pressure the recycled market even further.

"Last week I sold PET to a client, three days later the price dropped, and he told me some words that I think are better not to repeat," the source said, adding that the client claimed a drop of $30/mt in just four days.

On Oct. 8, prices for virgin PET originating from Vietnam were heard at a range between $920 and $940/mt CFR Brazil.

Between January and September Brazil's imports of virgin resin increased by 26% compared to 2024. During this period, Vietnam was the largest supplier, accounting for 29% of the total volume.

Prices under pressure

Although there is no forecast for a decision on antidumping duties against virgin resin from Vietnam and Malaysia, participants in the recycled PET market view the measure with optimism.

"What is happening to the market is frightening, so it would be great to have an antidumping measure to hold back virgin resin," a recycler from South of Brazil said.

A second recycler from the same region said that, with high stocks, he had to reduce negotiations and decided to give a collective vacation of 10 days in his company.

Platts, part of S&P Global Energy, last assessed post-consumer PET clear bottle bales at Real 4.40/kg DAP South of Brazil on Oct. 10. The price has been Real 0.10/kg lower since the previous month.

"The sale of recycled material is suffering from the low values of Asian virgin resins," said a market participant in Sao Paulo, adding that there is pressure for large brands to increase the purchase of recycled material without success.

"For recycled to be more attractive, we have to lower the price," the source added.

Platts assessed post-consumer PET clear bottle bales at Real 4.40/kg DAP Sao Paulo on Oct. 10. Prices have remained stable since the beginning of the month but are Real 1.50/kg lower than the last 2024 price assessment.

In addition to antidumping measures against Asian suppliers, participants in the recycled PET market are also awaiting the signing of a decree to regulate and promote the reverse logistics of plastic waste in the country. According to the MDIC, this should happen still in October.

Although there is still no clarity about what the effect on the recycled market will be, there are expectations that this measure will increase demand.

"In the long term, it may help, but immediately it doesn't change much," the market participant from Sao Paulo said. "If the market continues like this, with recycled being more expensive, companies will go to the limit of the decree."