- Market waits amid falling oil
- Healthy demand for high-quality R-PET from the West
Asian recycled polyethylene terephthalate prices stayed rangebound in the week ended on Dec. 1 with cautious sentiment amid an unclear market outlook.
Demand remained healthy for the high-quality R-PET grade, especially from the West, sources said. Nevertheless, R-PET export prices on an FOB basis were under pressure amid rising freight costs and container shortages.
Clear color R-PET flakes with PVC content of less than 30 ppm edged $5/mt lower on the week to be assessed at $855/mt FOB Southeast Asia on Dec. 1, S&P Global Platts data showed.
Meanwhile, clear color R-PET flakes with PVC content of 50-100 ppm rose $10/mt to $770/mt FOB Southeast Asia over the same period due to limited supply.
Trade participants were closely monitoring the volatile and tumbling oil prices, with sources worried about the demand outlook for R-PET fiber grade amid falling virgin PET prices.
Asian recycled plastics markets were not as resilient as the markets in Europe and the US, where demand was largely driven by legislations and voluntary commitments, sources said.
Nevertheless, there was still buying interest from customers for R-PET fiber grade, although the quantities were not large, a trader said.
Falling oil prices had little impact on Asian R-PET prices, and R-PET trade participants were heard adopting a wait-and-see approach before price adjustments in the coming days or weeks, sources said.
The ICE Brent crude oil February futures contract fell $9.67/b, or 11.9%, on the week to $71.81/b on Dec. 1 at 4:30 pm Singapore time (0830 GMT), Platts data showed.
Separately, R-PET raw material bales supply was heard improved in some Southeast Asia regions like Indonesia and Thailand amid the improved pandemic situation and social activities, sources said. Nevertheless, market sentiment remained cautious due to the omicron variant.