- PET bottle-bale prices rise 2-3% w-o-w amid improved converter and trader buying
- High freight costs continue to weigh on rPET export demand
India’s rPET market sentiment strengthened to stable-to-firm this week, supported by crude prices reaching around $105/bbl and an INR 3/kg increase in virgin PET prices. PET bottle-bale domestic prices increased by around 2-3% w-o-w, while buying from converters and traders improved. End-user demand remained stable to moderate, with good-quality bottle bales, flakes, and pellets seeing stronger demand than lower-grade material. Deals for quality material were heard around INR 1-2/kg above prevailing market levels.
Market participants are increasingly expecting further price increases, supporting stocking activity across the recycled value chain.
Delhi-NCR Market
Delhi-NCR saw improved demand compared with the previous week, with participants expecting prices to move higher and increasing their buying activity. The market turned stable-to-firm, with strong demand for good-quality bottle bales, flakes, and pellets supporting price increases across the value chain.
A recycler reported a shortage of good-quality raw material and positive trade sentiment. A first-grade PET bottle-bale deal was concluded at INR 60/kg, while traders were reportedly charging a INR 1/kg premium for urgent requirements.
Ahmedabad-Gujarat Market
Feedstock availability remained comfortable in Ahmedabad, with quality material available and supplies coming from both North and South India. Higher virgin PET prices have also improved the competitiveness of recycled material, with the price difference between virgin and recycled material widening to around INR 12-15/kg, encouraging fibre and packaging companies to increase recycled-material purchases.
A sourcing agent reported 30 ppm hot-washed PET flakes at INR 85.5/kg and <50 ppm flakes at ₹82/kg, while offering food-grade rPET B2B pellets at INR 116/kg to a Maharashtra buyer.
Mumbai Market
Mumbai’s rPET market improved from the previous week following the rise in virgin PET prices, although inventories remain comfortable. Several participants reported full warehouses, while muted export demand has contributed to excess availability in the domestic market.
Despite this, prices across the rPET chain remained firm, with deals heard around INR 1-3/kg higher than last week. A major buyer said end-user demand remains low to stable but is purchasing to stock material, expecting rPET flakes and pellet prices to increase by around INR 2-4/kg in the near term. The participant noted that prices had remained largely stable for the past two months amid comfortable inventories.
Export Market
Export offer levels increased following higher virgin PET prices and a modest improvement in demand. However, buying interest remained subdued as elevated freight costs continued to weigh on purchasing activity, particularly as the peak summer consumption season passed. Overall export sentiment remained bearish.
Regular PET bottle bale was indicated at $575-604/t FOB India, up 2.9% w-o-w, while bottle bale without caps and labels was indicated at $643-678/t, up 4% w-o-w.
<30 ppm clear flakes from certified recyclers were indicated at $915-930/t, up 1.4% w-o-w, compared with $879-889/t for regular recyclers, up 1.8%. Food-grade rPET pellets were indicated at $1,192-1,232/t FOB India, up 2.1% w-o-w.
Market Outlook
rPET prices could see upward pressure of around INR 2/kg in the coming weeks if crude remains elevated, as higher virgin PET prices would further support recycled values. Improving festive-season demand and a possible recovery in exports could encourage converters and traders to stock material, keeping domestic rPET prices firm in the near term.
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