- Brent rises 11.3% WoW to USD 95.70/bbl, Naphtha gains 6.9% to USD 855–860/MT.
- Virgin PET prices rise 2% WoW, while rPET remains volatile amid mixed market conditions.
India’s PET market strengthened during the assessment week ended 4 September, supported by a sharp rise in upstream costs. Brent rose 11.3% WoW to USD 95.70/bbl, while Naphtha gained 6.9% to USD 855–860/MT, providing cost support to virgin PET amid limited imports and firmer overseas offers.
Imported PET IV 0.80 prices increased around 2% WoW to INR 124–126/kg, while domestic buying remained largely need-based amid subdued downstream demand. The rPET market remained mixed, with tighter scrap availability supporting bale prices, while flakes and food-grade pellets gained around 1% WoW but remained constrained by weak end-user demand.
Crude Oil
Brent rose sharply during the week, reaching USD 95.70/bbl from USD 85.97/bbl a week earlier, while WTI increased to USD 91.69/bbl from USD 81.50/bbl.
The rise was driven by renewed US-Iran hostilities and increased concerns over crude flows through the Strait of Hormuz. Brent moved above USD 90/bbl early in the week and approached USD 96/bbl by the end of the assessment period.
Feedstock Market
Naphtha CFR FEA increased to USD 855–860/MT from USD 800–805/MT a week earlier, up around 6.9% WoW on a midpoint basis.
RIL’s MEG (basic) price increased sharply to INR 76.50/kg from INR 69.70/kg, a rise of around 9.8%, while PTA (basic) increased to INR 97.70/kg from INR 93/kg, up around 5.1% WoW. Mixed Xylene remained unchanged at INR 128/kg ex-Hazira and INR 127/kg ex-Patalganga.
IOCL increased its basic MEG price by INR 3/kg to INR 85.10/kg and PTA by INR 3.80/kg to INR 106.10/kg, while reducing DEG by INR 3.70/kg to INR 130.30/kg.
Virgin PET Market
Imported PET IV 0.80 was assessed at INR 124–125/kg ex-Mundra and INR 125–126/kg ex-Nhava Sheva, up around 2% WoW, supported by firmer overseas offers and limited imports.
Domestic PET IV 0.80 was assessed at INR 127/kg ex-Mumbai and INR 129.50/kg ex-Delhi, representing an increase of around 2% WoW. The move was supported by firmer producer prices and the sharp rise in crude.
Producers increased virgin PET prices by INR 3/kg on 1 August, while higher crude, feedstock costs and limited imports continue to support prices despite subdued downstream demand.
Buying remains largely need-based, with converters and traders avoiding aggressive inventory accumulation.
Recycled PET Market
The recycled PET market remained firm, with tighter availability of domestic PET scrap providing support to bale prices.
A western recycler reported that domestic bale prices have been increasing as imported scrap availability has fallen due to high freight costs and supply concerns. Domestic scrap traders have also been quoting higher levels. However, some transactions are still taking place below prevailing market indications, creating pressure on other sellers to adjust their offers.
rPET flakes and food-grade pellets also moved higher on the weekly assessment. Flakes below 30 ppm increased to INR 84/kg from INR 83/kg, while flakes below 100 ppm rose to INR 76/kg from INR 75/kg. Food-grade pellets increased to INR 115/kg from INR 114/kg.
However, downstream demand remains weak, keeping flakes and pellets under pressure despite the higher raw-material cost. Market participants expect packaging demand to improve during the second half of September, which could provide additional support to rPET prices.
Outlook
Virgin PET prices are expected to remain firm, with further upside possible as converters build stocks ahead of October demand.
In rPET, improving packaging demand in the second half of September could support INR 3–4/kg gains in food-grade flakes and pellets by next month. Bottle bale prices are likely to remain elevated through October-November amid tight scrap availability, material holding and labour shortages.
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