Platts Asia Recycled PET Assessments

Platts assessments are based on market information, including, but not limited to, firm bids and offers, and trades reported to the editor up to the close of business (4.30 pm Singapore time) on each day.

All the information used to inform the assessment is published transparently on Platts platforms as "heards". An assessment rationale is published explaining what the assessments are and how they have been reached.

A weekly market commentary accompanies the price assessments and rationale, which highlights the most important trends that have affected the markets that week and provides insight into what the market expects over the coming weeks.

• Prices expected to improve as summer draws nearer
• Pellets see high prices

Asian recycled polyethylene terephthalate prices were lower week on week March 22, with the R-PET clear flakes FOB SE Asia being assessed $10/mt lower week on week at $870/mt.

While market expectations of a pre-summer demand uplift remain, FOB SE Asia prices have been kept rangebound by the presence of competitively priced offers from some regional recyclers, while a weak crude oil market and lower virgin PET prices are also keeping prices capped, said some market sources.

Platts assessed the FOB SE Asia PET bottle grade $15/mt lower on the week March 22 at $1,050/mt.

Meanwhile, at 4:30 pm Singapore time, the ICE Brent May crude futures contract was at $75.02/b, up from its previous closing at $74.12/b, although prices have not closed at about the $80/b mark since March 13, S&P Global data showed.

However, overall demand was heard stable to higher particularly for premium resin despite price trends in key export markets being relatively stable, Southeast Asian recyclers noted that the large spread between FOB Southeast Asia prices and the prices of local resin are keeping enquiry levels healthy as the summer months approach.

“Freight rates have also been acceptable for buyers,” said one source.

The FD Northwest Europe R-PET flake was assessed unchanged week on week at Eur1400/mt March 21, while in the US, prices for R-PET clear flakes FOB Los Angeles were also stable week on week at 53 cents/lb March 14.

In the feedstock market, bale prices were also heard to be largely stable on the week, with some sources in Malaysia stating that feedstock generally costs around 45-48 cents/kg. In the pellets market, R-PET food-grade pellet offers were heard to be at $1,580-$1,650/mt FOB Southeast Asia, according to some sources.

Platts is part of S&P Global Commodity Insights.

Platts assessed Asian R-PET clear flakes with PVC content of 50-100 ppm stable on the day at $870/mt FOB SE Asia March 23 on thin trade indications.

Platts assessed premium R-PET clear flakes with PVC content of less than 30 ppm stable on the day at $950/mt FOB SE Asia March 23, giving some consideration to a tradable indication heard at above $950/mt from a seller.

Platts is part of S&P Global Commodity Insights.

This rationale applies to symbol(s) <RPTSE00>.