Fujian Billion to Launch New PET Plant in Vietnam in April 2023

The Chinese company Fujian Billion Petrochemicals intends to put into operation a new Polyethylene Terephthalate (PET) factory in the city of GO Dau. The plant will have a starting capability of 300,000 tonnes annually in the southern Tai Ninh Province, Vietnam's southeast. However, the facility already operates a production at this location with a 250,000-tonne annual capacity that was inaugurated in April 2020.

In the Asian market, PET Bottle prices started to fall at the beginning of March 2023. However, the price of PET Bottle Grade slightly increased on March 17 before leveling off at the end of March 24. As a result, ChemAnalyst has this to say: As peak summer comes, demand for PET Bottles will slightly improve. The downstream bottling and beverages market will witness a healthy approach toward its offtakes, likely increasing demand from the packaging industries. In the interim, Vietnam's reliance on imported materials will diminish with the opening of the new factory, which may result in some ease in pricing in the domestic market. Additionally, with the recent opening of a PET factory, Asian nations like Japan, India, and Indonesia may rely on Vietnamese materials.

At the same time, PET Bottle prices have been slightly declining to stabilize in the European market since the beginning of February 2023. Analysts contend that demand has been modest, even though the downstream industry is still debating big material purchases. The PET Bottle industry in Europe is still in disarray because of the low demand. As a result, the ChemAnalyst database reports a partial decline in PET Bottle prices, with prices settling at USD 1295/MT FD Hamburg on March 24.

As per the ChemAnalyst prediction, "There may be increment in PET Bottle prices in the coming weeks, owing to the demand recovery from downstream sectors. Meanwhile, the intense summer heat is predicted to boom the packaging material market."