- RIL, IVL Dhunseri roll over bottle-grade PET prices
- Firm PTA, MEG prices, delayed imports lend support
India’s polyethylene terephthalate (PET) value chain remained largely stable during the assessment week ended 1 August 2026, as firm feedstock prices, delayed imports, and improving downstream demand continued to support market sentiment. Although crude oil experienced heightened volatility throughout the week amid evolving geopolitical developments in the Middle East, domestic producers’ basic PET bottle grade price stands at INR 133.10/kg.
The recycled PET market remained broadly stable during the week, although buying sentiment softened marginally in the second half as some recyclers reported slower trading activity and adequate inventories. Despite a few transactions concluded at INR 1-2/kg lower than prevailing market levels, overall assessed prices remained unchanged w-o-w. Market participants continued to expect limited downside as delayed imports, tightening domestic availability, and healthy virgin PET demand are likely to support recycled pricing in the near term.
Crude oil
Global crude oil markets remained volatile during the assessment week as geopolitical developments and shifting supply expectations influenced market direction. Prices declined sharply at the beginning of the week after the United States paused military strikes on Iran, easing immediate concerns over supply disruptions. Brent and WTI crude posted steep weekly declines initially, weighing on feedstock sentiment across the polyester value chain.
However, prices recovered during the latter half of the week after renewed geopolitical tensions in the Middle East, a 3.3-million-barrel draw in US crude inventories, and persistent concerns over global supply disruptions supported buying interest. Brent crude briefly climbed above $90/bbl before easing on profit-taking towards the weekend as oil flows improved. Brent ultimately settled near $85/bbl, registering a monthly gain of more than 20% during July, while ongoing regional tensions continued to provide underlying support to global energy markets.
Feedstock market
The polyester feedstock chain remained firm during the assessment week despite significant volatility in upstream energy markets. After touching an eight-week high of $1,000-1,005/tonne (t) in the previous week, Naphtha (CFR FEA) corrected sharply at the start of the assessment period, falling to $840-845/t as easing geopolitical concerns weighed on crude oil. However, sentiment improved during the latter half of the week, with naphtha recovering to $885-890/t by the weekend, supported by renewed strength in crude oil and persistent supply-side concerns. Market participants noted that firm domestic PTA and MEG prices continued to provide cost support to the virgin PET market despite fluctuations in crude oil and naphtha.
Virgin PET market
India’s virgin PET bottle-grade market remained stable during the assessment week, with domestic producers rolling over the basic PET price at INR 133.10/kg, effective 1 August 2026. Spot transactions were reported in the range of INR 131-133/kg, reflecting steady buying interest from converters and processors.
Imported PET offers also remained largely stable, with Nhava Sheva assessments at INR 129-130/kg and Mundra offers at INR 130-132/kg, indicating balanced import parity despite ongoing logistics challenges.
A western India trader said market participants were holding material in anticipation of firmer prices, supported by tight producer availability and improved downstream demand compared with the previous week. A producer source added that delayed import arrivals continue to tighten domestic availability, limiting downside despite fluctuations in crude oil. Meanwhile, a converter from north India said procurement remained strictly on an immediate-need basis, with buyers avoiding inventory accumulation amid continued market uncertainty.
Recycled PET market
India’s recycled PET market remained largely stable during the assessment week, although trading activity slowed during the second half. Assessed prices for rPET flakes and pellets remained unchanged from the previous week, despite a few isolated transactions concluded at INR 1-2/kg lower across certain regions.
Market participants continued to expect limited downside as delayed imports and tightening domestic availability are likely to support recycled PET prices over the near term. However, buying activity remained selective, with processors covering only immediate requirements.
During the latter half of the week, a recycler from western India said prices remained broadly stable but showed a weaker undertone as warehouses had reached comfortable inventory levels. The source added that trading activity had remained limited over the previous few days despite steady demand, while labour availability had declined as many workers returned to their hometowns for the harvest season, potentially tightening bottle bale collection in the coming weeks.
Outlook
India’s PET value chain is expected to remain supported in the coming week as delayed imports and firm feedstock prices continue to tighten domestic supply. Improving downstream demand and limited producer availability may encourage domestic PET producers to consider price increases should upstream costs remain elevated.
The recycled PET market is also expected to remain broadly stable, with tighter bottle bale availability during the harvest season potentially providing additional support to recycled prices. However, procurement is likely to remain largely need-based as converters continue to closely monitor crude oil movements, feedstock trends, and domestic producer pricing before building inventories.
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