India: rPET market remains subdued as bottle-bale prices ease; export enquiries improve

• Flake, pellet prices remain largely stable, supported by steady demand
• Export indications remain unchanged; lower freights improve enquiries 

India’s recycled polyethylene terephthalate (rPET)  market remained soft to stable during the week ended 9 October, with PET bottle-bale prices easing in key markets while flakes and pellets remained largely stable. Delhi saw a sharper correction, while Mumbai was largely unchanged. Buying remained need-based as converters continued to limit inventory amid cautious market sentiment.

Quality flakes and pellets remained more resilient than bottle bales, supported by steady demand from fibre and packaging applications. Gujarat traders reported adequate bale availability but expect some tightening after Diwali. Export enquiries also improved as freight costs eased, providing some support to overseas business.

India rPET Prices

Mumbai

Mumbai’s rPET market remained broadly stable, although regular bottle-bale availability showed some decline. Flake prices were largely unchanged, while food-grade pellet demand remained comparatively firm. Market participants said converters continued to buy mainly for immediate requirements, while slightly tighter bale availability could provide support if supply remains constrained.

Delhi-NCR

Delhi-NCR saw a moderate correction in bottle bales, while the flake market remained stable. Deals were reported around INR 57/kg, with some business heard at around INR 56.5/kg, reflecting continued pressure on regular feedstock. Demand for processed material remained comparatively steady, although buyers continued to avoid building large inventories.

Ahmedabad-Gujarat

Ahmedabad recorded a marginal correction in regular bottle bale prices, while flakes and pellets remained stable. Traders reported adequate supply currently but expect bottle-bale availability to decline somewhat after Diwali as winter conditions begin. Demand from both fibre and packaging applications remained healthy, supporting processed rPET prices.

Exports

Indian rPET export sentiment improved as lower freight costs provided some relief after elevated logistics costs had curtailed shipments. Traders reported a gradual improvement in business, although export indications remained broadly unchanged. Participants expect activity to improve further if freight remains favourable.

Outlook

The domestic rPET market is expected to remain soft to stable, with bottle-bale prices under pressure while stable flake and pellet demand limits further downside. Post-Diwali scrap availability will be a key factor, particularly with winter approaching. Export activity could improve further if freight costs remain supportive, while crude and virgin PET prices will continue to guide replacement values.