- Recycled PET prices were mixed in Q1’26, with Asia showing firmer movement, Europe under cost and regulation-linked pressure, and North America weighed down by high processing costs.
- Feedstock pressure came from stronger PET bottle flake trends in Asia, crude-linked virgin PET cost movement, and higher freight risk after the Iran war and Strait of Hormuz closure.
- Downstream demand was led by beverage packaging, food-grade applications, and recycled-content commitments, while fibre demand and discretionary buying stayed weak.
Asia
Recycled PET prices in Asia strengthened during Q1’26 as PET bottle flake sentiment improved in China. The trend was supported by tighter spot circulation, stronger upstream PTA and MEG movement, and seasonal restocking from beverage packaging users. The Iran war and Strait of Hormuz closure raised freight and energy-risk premiums, which supported virgin PET costs and improved the relative position of recycled PET. Demand from bottle-to-bottle and packaging applications improved, while fibre-sector buying remained cautious.
Europe
Recycled PET prices in Europe were steady to firm in Q1’26, supported by policy-led demand and higher logistics risk. The Middle East disruption did not directly affect recycled polymer supply, but it raised concerns around freight, insurance, energy, and virgin PET replacement costs. European recyclers still faced pressure from cheaper virgin PET, which limited strong price gains despite recycled-content targets. Demand from beverage packaging remained the main support, while non-food and fibre buyers purchased only essential volumes.
North America
Recycled PET prices in North America remained under pressure during Q1’26 as high conversion costs and weak collection economics limited competitiveness. The US PET recycling rate was reported at 30.0%, while bottle-to-flake conversion costs were around twice as high as Asia, restricting margin flexibility for recyclers. The Iran war supported broader feedstock and freight costs, but domestic demand did not rise enough to offset cheaper virgin PET competition. Beverage packaging demand remained stable, but buyers avoided aggressive restocking.