SINGAPORE (ICIS)--China’s spot prices for hot-washed clear/white recycled polyethylene terephthalate (R-PET) flakes have dipped to $640-650/tonne in the week ending 24 October on waning demand, market sources said on Tuesday.
Domestic spot prices for the material have been on a recent uptrend and were assessed at $650-660/tonne for the week ending 17 October, according to ICIS data.
Prices have fallen this past week because of the supply overhang of the material in the market following an uptrend in recent weeks which saw buyers using up their import quotas to procure CFR China R-PET cargoes, according to a China-based source.
The Chinese government had not only stopped issuing import quotas for R-PET flakes but have been conducting plant checks to ensure buyers with import quotas in hand were running their operations in line with government specifications, the source said.
Those whose operations did not meet these specifications would have their standing import quotas taken away, according to the source.
This made import quotas even rarer, and was an incentive for buyers to use theirs as quickly as possible, the source said.
Other regional market players confirmed what the Chinese source said about the Chinese government taking import quotas away from holders whose operations did not align with strict guidelines.
Taiwanese and Thai sources said they had not sold recycled flakes to Chinese customers for some time now and are focusing on their respective domestic markets.