India R-PET recyclers eye US market return after tariff reduction

Indian recycled polyethylene terephthalate producers welcomed a reduction in US tariffs to 18%, with prices rising $15-$30/mt on an FOB basis as market participants anticipated a gradual recovery in exports to what was once among their largest markets.

The US imposed a 50% tariff on both virgin and recycled PET resins from India, effective Sept. 8, 2025, impacting exports that had reached almost 5,000 mt per month, according to a trader.

The move had led FOB values to fall sharply, with recycled PET food-grade flakes hitting an all-time low of $790/mt on Nov. 27, 2025, and food-grade pellets with an intrinsic viscosity above 0.8 reaching a record low of $1,110/mt FOB India on Dec. 2, 2025, according to data from Platts.

While some trade flows to other regions and domestic demand have provided support since those lows, prices have picked up sharply following the tariff reduction news. Sellers said export conversations are restarting, with FOB India offers for food-grade R-PET pellets edging up to $1,280/mt.

Recovery outlook

Several recyclers said they plan to reconnect with former US buyers, with one saying the outreach has already begun. However, most said that any recovery will be gradual, with suppliers and buyers showing cautious optimism as Southeast Asian material remains highly competitive, limiting near-term upside.

A Middle East-based converter who regularly buys Indian R-PET flakes confirmed prices are inching up but said Southeast Asian material remains about $100/mt lower, meaning the tariff cut alone may not immediately translate into a sharp jump in demand. Another buyer said the effective implementation date would remain an important consideration, but confirmed that queries had begun to come in.

Platts, part of S&P Global Energy, assessed premium recycled polyethylene terephthalate clear flakes with a PVC content of less than 30 ppm at $850/mt FOB India on Feb. 4, up $15/mt day over day, based on a higher tradable indication heard from a buyer. Platts assessed R-PET food-grade pellets with a minimum intrinsic viscosity of 0.8 at $1,180/mt FOB India, up $25/mt day over day, based on a higher tradable level heard from a buyer.