- Regional rPET sentiment diverges on inventory and collection
- Export rPET buying remains muted on high freight costs and weak demand
India’s rPET market remained broadly stable but regionally mixed. Mumbai continued to face weak downstream demand, while Delhi-NCR reported stronger buying interest for higher-quality feedstock. Gujarat remained largely balanced, supported by steady demand and availability.
Market participants continue to track PET bottle collection, recycler inventories and virgin PET prices. Slower collection could support prices in some regions, while comfortable inventories and weak downstream demand may limit upside elsewhere.
Mumbai Market
Mumbai’s rPET market remained under pressure from weak downstream demand, comfortable recycler inventories and improved bottle-bale availability. A major trader reported that demand is currently weak and keeping prices under pressure, although an improvement in demand is possible later this month.
A recycler based in Nashik reported that its warehouse is currently full and that it is purchasing only the bottle-bale volumes required to keep its plant running. At the same time, bottle-bale supply has improved, reducing feedstock tightness.
Delhi-NCR Market
Delhi-NCR presented a firmer market tone compared with Mumbai, particularly for higher-quality feedstock. A trader reported that market activity is currently good, with fibre-grade business more active than food-grade material. The trader also noted that an increase in virgin PET prices could provide support to recycled prices.
Demand for first-grade bottles remains strong in the region, supported by the presence of several high-quality recyclers. A Delhi-NCR recycler reported purchasing 150 tonnes of soft bottles at INR 58/kg on 19 August, highlighting continued demand for suitable feedstock.
A scrap trader expects a modest price uptick in the near term, supported by slower collection and moderately stronger demand.
Ahmedabad-Gujarat Market
Gujarat remained broadly balanced, with steady demand and stable collection and availability.
Ahmedabad PET bottle bale was assessed at INR 52/kg, while clear rPET flakes were at INR 83.5/kg (<30 ppm), INR 80/kg (<50 ppm) and INR 76/kg (<100 ppm, high quality). Green flakes were at INR 74-75/kg, while non-food-grade and food-grade pellets were assessed at INR 104-105/kg and INR 112-115/kg, respectively.
In Surat, a major recycler reported a 250-tonne regular PET bottle-bale deal at INR 50.5/kg, against market levels of around INR 51/kg, and expects rPET prices to remain stable on steady demand and balanced collection and availability.
A certified Rajkot recycler also reported stable conditions but expects a INR 2/kg increase, with bottle bale at INR 52/kg and <30 ppm clear flakes at INR 85-86/kg, as market activity could improve toward Diwali.
Export Market
Indian physical export activity across rPET was reported broadly stable w-o-w, while recyclers reported mixed sentiment around domestic demand. Despite some pickup in upstream bottle-bale prices, demand for flakes and pellets from export destinations remained moderate to muted.
Regular PET bottle bale was assessed at $550-560/MT FOB India, while bottle bale without caps and labels was indicated at $600-610/MT. For recycled material, <30 ppm clear flakes from certified recyclers were assessed at $900-920/MT, compared with $858-879/MT for material from regular recyclers. Food-grade rPET pellets were indicated at $1,170-1,200/MT FOB India.
European buying interest is also subdued. A Europe-based buyer reported that Europe and the UK are currently on vacation, keeping demand subdued.
Market Outlook
rPET prices are likely to remain rangebound with a firm bias in select markets. Stronger quality-feedstock demand and slower collection could support Delhi-NCR and parts of Gujarat, while high inventories may cap Mumbai’s upside. Export demand remains the key constraint, with freight costs and muted pellet buying limiting gains. A rise in virgin PET prices could strengthen domestic rPET demand.
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