India’s rPET Prices Rise as Monsoon Tightens Bale Supply: Sources
India’s recycled polyethylene terephthalate or rPET prices increased this week as the approaching monsoon season has tightened bottle collection and pushed bale prices higher, while downstream demand has remained largely stable, market sources said.
According to OPIS data, prices for bales with labels were assessed at $558.817 per metric ton, increased from $551.317/mt the previous week. Bales without labels were assessed at $601.225/mt, increased from $596.225/mt over the same period. Premium-grade rPET flake prices were unchanged at $900-$920/mt, and pellets were unchanged at $1,165-$1,185.
Market sources said demand for rPET flakes and pellets has not changed significantly, with buyers continuing to purchase based on immediate production requirements. However, tighter availability of post-consumer bottles ahead of the monsoon has increased competition among recyclers for feedstock.
Bale prices rose as collectors and recyclers anticipated more difficult collection conditions during the rainy season. Sources said wet weather can disrupt collection activity and transportation, making it more difficult to secure sufficient volumes of clean bottles.
The increase in bale costs has begun to translate into higher offers for recycled material, with recyclers attempting to pass through the additional feedstock expense to downstream buyers.
“Demand is stable, but bale availability is becoming tighter ahead of the monsoon,” an India-based recycler said.
Market sources said buyers have so far been relatively receptive to higher prices, although purchasing remains cautious as converters continue to monitor movements in virgin PET prices and overall downstream demand.
Several recyclers noted that the seasonal tightening of feedstock availability could provide further support to rPET prices if collection becomes more challenging once the monsoon intensifies.
At the same time, stable demand has prevented the higher bale costs from being fully absorbed by recyclers, increasing pressure on margins and encouraging sellers to maintain firmer offers.
Sources said the market is likely to remain focused on feedstock availability in the coming weeks, with collection rates expected to become an increasingly important factor for pricing as the rainy season progresses.
Market sources expect India’s rPET prices to remain stable in the near term, supported by tighter bale availability and stable downstream demand. However, the extent of further price increases will depend on the severity of the monsoon, virgin PET prices and whether buyers are willing to absorb higher recycled material costs.
—Reporting by Xin Nee Chua, xchua@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com