- Reliance cuts PTA prices; IOCL lowers MEG
- Virgin PET trades below list prices
India’s polyethylene terephthalate (PET) market remained subdued during the week ended 10 July, with weak downstream demand continuing to weigh on both virgin PET and recycled PET (rPET). Competitive spot offers kept virgin PET transaction prices below domestic producer list prices, while recycled PET prices declined across the value chain amid expectations of further corrections in virgin resin. Buyers largely restricted procurement to immediate production requirements, limiting fresh buying across both markets.
According to PolyMint’s assessment, imported virgin PET bottle grade was assessed at $1,140-1,190/t CFR Nhava Sheva, down from $1,200-1,250/t a week earlier, representing a decline of around 4.9% w-o-w.
In the domestic market, Reliance Industries’ PET bottle-grade list price stood at around INR 127.60/kg, while spot transactions were heard at INR 122-125/kg, reflecting competitive offers, producer incentives, and subdued converter demand. Market participants said producers were also offering discounts of around INR 2.50/kg to improve sales volumes amid slow order inflows.
Although lower purified terephthalic acid (PTA) and monoethylene glycol (MEG) prices eased part of the raw material cost burden, the benefit failed to translate into stronger PET demand as beverage, packaged water, and consumer packaging converters continued to operate with conservative procurement strategies.
A western India-based converter said, “Current spot offers remain attractive, but we are avoiding inventory accumulation until producer pricing stabilises.”
A distributor added, “Converters continue to buy only against confirmed orders. Most buyers expect producer prices to soften further before rebuilding inventories.”
The recycled PET market also remained under pressure as expectations of lower virgin PET prices discouraged inventory replenishment across the recycling value chain.
According to PolyMint’s assessment, rPET clear flakes (<100 ppm) were assessed at INR 72-74/kg, down around 2% w-o-w. Regular PET bottle bales (Delhi) were assessed at INR 45-47/kg, down by INR 2-3/kg from the previous week’s INR 48-49/kg. Clear flakes (<50 ppm) declined to INR 79-80/kg, down 1.9% w-o-w, while higher-quality flakes (<30 ppm) slipped to INR 82-84/kg, down 2.9%. Food-grade rPET pellets (IV 0.84) were assessed at INR 109-112/kg, down 1.3% from the previous week.
Market participants attributed the correction to the narrowing price differential between virgin and recycled PET, which has reduced the commercial incentive for buyers to switch to recycled material. Consequently, recyclers also remained cautious in replenishing bottle bale inventories.
A recycler from north India said, “Buyers are waiting for virgin PET prices to stabilise before committing to larger volumes. Until then, purchases remain limited to immediate production needs.”
A trader added, “Enquiries improved slightly, but customers continue to purchase small lots, anticipating further price revisions in virgin PET.”
Processors said beverage and packaging demand remained below seasonal expectations despite steady consumption. Competitive domestic offers and softer feedstock costs have intensified competition among suppliers, while converters continued prioritising inventory management over forward bookings. Several traders also noted that the narrowing premium of virgin PET over recycled material has reduced urgency among recyclers to replenish feedstock, keeping trading activity subdued across the recycled value chain.
Outlook
Buying activity is expected to remain largely need-based through mid-July unless domestic producer pricing stabilises or seasonal demand from the beverage and packaging sectors improves. Market participants will closely monitor further producer price revisions, feedstock movements and downstream order inflows for clearer market direction.
Recent geopolitical tensions have lifted crude oil prices, which could provide cost support to key feedstocks such as PTA and MEG over the coming weeks. However, unless downstream consumption improves, higher upstream costs alone are unlikely to translate into firmer PET prices. The price spread between virgin and recycled PET will remain a key indicator influencing procurement strategies, inventory decisions and demand across the recycled value chain.
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