Recycled PET Market Demand Still Sluggish in India and China: Sources
Weak downstream demand and soft virgin polyethylene terephthalate or PET pricing continue to suppress buying interest in rPET across key Asian markets, including India and China, according to market participants.
In India, a recent amendment to extended producer responsibility rules has effectively relaxed compliance requirements for 30% rPET content in rigid plastic packaging, allowing brand owners to carry forward shortfalls until 2028. The regulatory shift, implemented in June, has stalled procurement from brand owners and converters, reducing offtake from domestic recyclers and limiting spot market activity.
“Everyone was gearing up for compliance, then the carry-forward clause changed the equation,” said an India-based flake seller. “Now, India is in a bad state.”
In India, premium rPET flake offers were heard at around $840-$870 per metric ton FOB India, while rPET pellets offers were heard at $1,130-$1,190/mt FOB India. “Due to U.S. tariffs and low domestic demand, many Indian recyclers are exploring new markets such as the Middle East and Africa,” said another India-based seller.
The Food Safety and Standards Authority of India approved the use of food-grade rPET earlier in 2025, raising hopes for sustained demand from the beverage and dairy sectors. However, weak enforcement and uncertainty over feedstock quality continue to hinder investments in recycling infrastructure.
In China, oversupply of virgin PET and weak demand from the packaging sector have weighed on the recycled flakes market. While premium rPET flake offers were heard at around $820-$860/mt FOB China, deals remain thin, with buyers opting for cheaper virgin material.
“There’s no incentive to use rPET when virgin PET is cheaper,” said a China-based seller. “Demand is low, and the market is bad.”
Food-grade rPET production remains constrained by the lack of consistent feedstock and market demand, particularly in India and parts of Southeast Asia. India’s recyclers say margins are under pressure due to tepid demand and limited offtake agreements.
Sentiment remains cautious heading into the fourth quarter, as November will be a key period to determine whether there will be a positive outlook for January 2026 deliveries. For now, prices remain under pressure due to insufficient demand and very limited volumes.
–Reporting by Xin Nee Chua, xchua@opis.com; Editing by Mei-Hwen Wong, mwong@opis.com