- Domestic PET bottle bale prices increase by INR 3.5-5/kg week-on-week
- Quality flakes and pellets continue to attract stronger buying interest
India’s recycled PET (rPET) market maintained a firm trend, supported by crude prices near $108/bbl, higher virgin PET prices, and improved buying interest from converters and traders. Domestic PET bottle bale prices increased by around 6-7% week-on-week, while virgin PET prices rose by INR 4.5/kg during the previous week.
Demand remained stronger for good-quality bottle bales, flakes and pellets than for lower-grade material. Some quality-focused transactions were reported at premiums of INR 1-2/kg over prevailing market levels. End-user demand remained stable to satisfactory, while market participants continued to monitor feedstock costs and inventory availability.
Mumbai market
Mumbai’s rPET market sentiment improved across the value chain, with business activity increasing from the previous week, particularly in flakes and, to a lesser extent, pellets.
Scrap supply from North Indian traders improved, while arrivals from South India were reportedly lower amid monsoon conditions. Recycler inventories remained comfortable, although scrap traders continued to offer different prices depending on payment terms.
A major buyer reported purchasing <30 ppm clear PET flakes at INR 89/kg from a certified recycler and INR 87-88/kg from regular recyclers. Food-grade rPET pellet offers from certified recyclers remained stable at around INR 115-117/kg.
Delhi-NCR market
Demand improved compared with the previous week, as expectations of further price increases encouraged buying activity. Market sentiment remained stable to firm.
Good-quality bottle bales, flakes and pellets continued to attract stronger demand, supporting higher prices across the recycling value chain. A purchase manager at a major Delhi recycling company reported a 150-tonne first-grade PET bottle bale transaction at INR 62.4/kg, while traders were quoting around INR 64/kg for urgent requirements.
Supply of both good and regular-quality feedstock remained comfortable. This indicates that quality-driven buying strength has not yet resulted in an overall supply shortage.
Ahmedabad-Gujarat market
Ahmedabad recorded the strongest market momentum among the key consuming centres, supported by improved converter demand for bottle bales and flakes. Supply availability was reported to have improved, although inventories of bottle bales and flakes remained tight.
Pellet inventories remained comfortable, with converter demand stable to firm. A scrap trader offered 200 tonnes of regular PET bottles at INR 55.5/kg against advance payment and concluded a 100-tonne transaction at INR 57/kg on 28-day payment terms.
The trader indicated that prices could reach INR 60/kg, supported by higher crude prices and stronger recycler demand.
Export market
Indian rPET export activity remained constrained despite firmer offer levels. Export-quality flakes attracted comparatively stronger buying interest, while elevated freight costs continued to limit overseas purchasing and pressure export economics.
Higher container freight costs and proposed peak-season surcharges are expected to continue affecting the competitiveness of Indian rPET exports. Export demand is therefore likely to remain selective, particularly for material with higher delivered costs.
Market outlook
The domestic rPET market is expected to remain firm, supported by elevated feedstock costs and improving demand across the recycling value chain. Market participants expect regular PET bottle bale prices to increase by around INR 2-3/kg towards INR 60/kg in the coming weeks.
Pellet demand is expected to improve in October, particularly from film and packaging-grade applications. Good-quality flakes and pellets could also gain INR 2-3/kg if converter buying strengthens and quality-material inventories remain tight. Export recovery, however, will continue to depend on freight costs and overseas buying economics.
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