Weekly round-up: Indian PET market remains firm as feedstock costs surge; crude retreats towards week’s end

• RIL, IVL Dhunseri raise PET bottle-grade prices by INR 1.5/kg
• Price hikes across PTA, MEG reinforce upstream cost support

India’s polyethylene terephthalate (PET) value chain remained firm during the assessment week ended 27 July 2026, as rising crude oil prices and strengthening feedstock costs supported both virgin and recycled markets. Upstream cost pressures intensified, with naphtha reaching an eight-week high, prompting domestic producers to revise purified terephthalic acid (PTA), monoethylene glycol (MEG), and virgin PET prices higher. Ahead of the anticipated revisions, buying activity improved as processors and converters advanced purchases, while imported PET offers remained broadly stable.

The recycled PET market also witnessed improved momentum, supported by stronger virgin PET pricing, healthy buying interest, and inventory replenishment. PET bottle bale prices moved higher during the week, while recycled PET (rPET) flakes and food-grade pellets remained firm. Market participants largely expect the market to remain stable in the near term, with procurement continuing on a need-based basis despite firmer upstream fundamentals.

Brent crude exhibited heightened volatility during the week, briefly surpassing the psychological $100/bbl threshold before settling at $98.69/bbl, while WTI crude strengthened above $91/bbl. Escalating geopolitical tensions in the Middle East, coupled with concerns over potential supply disruptions through the Strait of Hormuz and Red Sea shipping routes, provided strong support to global oil prices.

However, the late-week correction was driven by profit-taking, uninterrupted Red Sea crude shipments, higher Russian exports, rising US crude inventories, and expectations of additional OPEC+ production, although the overall market remained underpinned by persistent supply risk concerns.

Feedstock market

The polyester feedstock chain strengthened during the week, supported by a rally in crude oil and naphtha. Naphtha CFR FEA climbed to $1,000-1,005/t, an eight-week high, increasing cost pressure across the PET value chain. Towards the weekend, domestic producers revised feedstock prices upward, reflecting higher upstream replacement costs.

Market participants noted that the sharp rise in naphtha and sustained strength in crude oil significantly improved cost support across the polyester chain. A western India converter said feedstock inflation had strengthened expectations of higher PET resin prices, while a producer source indicated that the PTA revisions were primarily driven by rising upstream replacement costs.

Despite the firm cost environment, buyers largely adopted a cautious procurement strategy, covering only immediate requirements while awaiting further clarity on crude oil and feedstock trends.

Virgin PET market

India’s domestic virgin PET market remained stable for most of the week, with producers maintaining the basic price at INR 131.60/kg despite higher feedstock costs. Buying activity improved ahead of anticipated price revisions, as converters advanced purchases to secure inventories. Effective 27 July, Reliance Industries Limited (RIL) and IVL Dhunseri increased the basic PET price by INR 1.50/kg to INR 133.10/kg. Meanwhile, imported PET Bottle Grade CFR India offers remained stable at $1,160-1,210/MT throughout the week, indicating balanced import availability despite strengthening upstream costs.

Ahead of the anticipated revisions, buying activity improved as processors and converters advanced purchases to secure inventories, with most market participants expecting an INR 1.5-2/kg increase. Following the announcement, trading activity moderated as buyers shifted to a wait-and-watch approach.

A north India-based trader said most converters had already covered near-term requirements before the revision, while a producer source added that the latest increase was necessary to reflect higher feedstock costs, although downstream demand continued to be largely need-based.

Recycled PET market

India’s recycled PET market strengthened during the week, supported by improved demand, rising virgin PET prices and higher feedstock costs. PET bottle bale prices increased steadily throughout the week, while rPET flakes and food-grade pellets remained largely firm amid healthy buying interest. Trade activity improved across major recycling clusters as converters replenished inventories ahead of virgin PET price revisions.
By the end of the week, PET bottle bale deals were heard at INR 50-51/kg in Delhi, INR 50/kg in Rajkot, and around INR 49/kg across Mumbai, Nashik, and Surat. Despite the recent gains, most recyclers and traders expect prices to remain stable in the near term, with buying continuing primarily on a need-based basis.

Outlook

The PET value chain may witness softer pricing sentiment in the coming week after crude oil declined by 7-11%, easing concerns over Middle East supply disruptions and reducing cost support for upstream feedstocks. Lower feedstock costs may also exert downward pressure on post-consumer PET (PCR) bottle bale prices if buying sentiment weakens. However, recent producer price revisions are expected to provide near-term support to virgin PET, while recycled PET prices are likely to remain largely stable unless upstream weakness translates into softer demand.