India: PET resin import prices rise as domestic market remains subdued

• Import prices rise $30/t w-o-w to $1,295/t CFR India
• Domestic PET prices ease despite producer price hikes
• Potential Chinese restarts threaten Asian supply balance

India’s virgin polyethylene terephthalate (vPET) market showed mixed trends in the week ended 16 October, as higher international feedstock costs lifted import replacement values while cautious downstream buying weighed on domestic prices. Import prices rose 2.4% w-o-w, but domestic PET bottle-grade resin prices declined by 0.3-0.7% across key markets. Potential Chinese capacity restarts in late October and November could increase regional supply and limit further price gains.

Feedstock costs provide mixed signals

Brent crude prices rose 6.7% w-o-w to $109.86/bbl, while West Texas Intermediate (WTI) increased 9.6% to $99.05/bbl. Naphtha prices in Far East Asia climbed to $1,000-1,005/t from $895-900/t on 9 October, raising upstream cost pressure.

Domestic feedstock trends were mixed. Purified terephthalic acid (PTA) prices remained unchanged at INR 106.50/kg, while monoethylene glycol (MEG) declined to INR 71.70/kg from INR 78.70/kg. Mixed xylene prices also softened to INR 128/kg ex-Hazira and INR 127/kg ex-Patalganga, partly moderating domestic cost pressures.

Import prices rise on higher replacement values

PET bottle-grade resin prices on a CFR India basis increased to $1,295/t from $1,265/t a week earlier. Vietnam-origin PET bottle-grade resin was indicated at around $1,275/t FOB, up from $1,265/t.

However, Chinese PET prices softened towards 16 October. Nearly 3 mnt of Chinese PET bottle-chip capacity could face restart decisions in late October and November, potentially increasing Asian supply and competition for Indian suppliers.

Domestic prices ease despite producer hikes

Domestic PET bottle-grade resin (IV 0.80) prices declined by around 0.3-0.7% w-o-w to INR 139/kg ex-Mundra, INR 140/kg ex-Nhava Sheva, INR 141/kg ex-Mumbai and INR 144.50/kg ex-Delhi.

Major producers raised prices by INR 2/kg on 14 October amid higher feedstock costs. An earlier INR 2.50/kg scheme from Reliance Industries and IVL Dhunseri had offered temporary relief to buyers.

However, converters continued to procure on a need basis, balancing higher replacement costs against immediate requirements. Demand remained steady but price-sensitive, with no verified evidence of widespread inventory accumulation or accelerated festive-season stocking.

Recycled PET prices strengthen

Delhi PET bottle-bale prices increased 10.7% w-o-w to INR 62/kg. Recycled PET (rPET) flakes below 30 parts per million (ppm) remained at INR 86/kg, while flakes below 50 ppm and below 100 ppm stood at INR 83/kg and INR 77/kg, respectively.

Food-grade rPET pellet prices edged up to INR 117.50/kg from INR 117/kg, indicating firmer prices across selected recycled PET grades.

Outlook

India’s PET market is likely to remain sensitive to feedstock volatility and downstream buying activity. Higher import replacement values may support seller offers, but cautious converter procurement could limit domestic price increases. Potential Chinese capacity restarts in late October and November may add to regional supply pressure, making actual restart volumes and subsequent export offers key indicators for the market.