- Reliance raises list price of PET bottle grade by INR 4/kg
- Feedstock revisions reinforce a firmer market outlook
India’s polyethylene terephthalate (PET) market witnessed an improvement in buying activity during the week ended 18 July, as expectations of higher domestic producer prices encouraged converters and traders to advance procurement. While purchasing largely remained requirement-based, demand improved compared with the previous week as market participants anticipated upward revisions in virgin PET prices following firmer upstream feedstock costs.
Sentiment across the recycled PET (rPET) value chain also turned cautiously bullish, with participants expecting official virgin PET price revisions to lend further support to recycled resin prices.
According to PolyMint’s assessment, imported virgin PET bottle grade was assessed at $1,160-1,200/t CFR Nhava Sheva, up from $1,140-1,190/t a week earlier, representing an increase of around 1.3% w-o-w. Although imported cargoes traded largely within the previous week’s range for most of the week, deal ideas moved higher towards the weekend following domestic feedstock price revisions and rising upstream costs.
In the domestic market, Reliance Industries’ PET bottle-grade list price remained at INR 127.60/kg for most of the week. However, effective 18 July, the producer increased the list price by INR 4/kg, taking the basic price to INR 131.60/kg.
Reliance had also withdrawn its Price Protection and Early Bird Incentive schemes effective 17 July, signalling a firmer pricing stance. Market participants expect the latest price revision, supported by stronger crude oil values and higher PTA and MEG feedstock costs, to lend further support to PET prices in the coming weeks.
Higher upstream feedstock costs strengthened sentiment across the virgin PET market during the week. Domestic producers revised PTA, MEG and DEG prices upward effective 18 July, reflecting the increase in raw material costs. The revisions reinforced market expectations of higher virgin PET prices, prompting buyers to advance purchases ahead of anticipated producer announcements. Market participants said the withdrawal of price protection and early-bird incentives further signalled a firmer pricing stance, encouraging increased buying interest across the value chain.
A converter based in western India said, “Buying activity improved during the week as customers anticipated higher producer prices. Most procurement was advanced ahead of the expected revisions rather than being deferred.”
A distributor added, “Demand has improved compared with the previous week, and enquiries have increased as buyers expect virgin PET prices to move higher following the latest feedstock revisions.”
Recycled PET market
The recycled PET market also witnessed an improvement in sentiment during the week, supported by expectations of higher virgin PET prices. Trading activity strengthened across the value chain as buyers resumed enquiries and concluded deals in anticipation of firmer recycled resin prices. Market participants said improving demand in the virgin market has started to support recycled PET negotiations, with offers and deal discussions heard at higher levels.
A recycler from north India said, “Demand has improved over the past week as buyers anticipate higher virgin PET prices. We are seeing increased enquiries and deals being concluded at firmer levels across recycled PET grades.”
A trader added, “Inventory availability remains healthy and supply is adequate. As long as virgin PET prices remain firm, the recycled PET market is expected to maintain its current pricing momentum without significant downward pressure.”
Outlook
The Indian PET market is expected to remain firm in the near term, supported by higher feedstock costs and expectations of further producer price hikes. Elevated crude oil prices amid geopolitical tensions are likely to keep PTA and MEG costs firm, strengthening PET production costs. Healthy buying interest is expected to continue as converters procure ahead of anticipated price revisions, while the rPET market is also likely to remain supported due to the widening price gap with virgin PET.
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