F1 Cars Adopt Eco-Friendly Black Technology! Lotte Shuts Down 1 Million-Ton Cracker; McKinsey Announces Major Layoffs

International News Guide

Raw Material News - Covestro and XRG Clear Final Hurdles for Landmark Transaction

Electronics News - Pegasus Materials Promotes New Bio-Based Materials, Targeting Electronics and Aerospace 3D Printing

Additive News - BASF's New High-Performance Dispersant Production Line Officially Commences Operation in Nanjing, China

Automotive News - U.S. Tariffs on South Korean-Made Cars and Auto Parts Reduced to 15% from December 1

Macroeconomic News - Taiwan Authorities Plan to Add $40 Billion in Military Spending; AIT Expresses Welcome; MOFA Responds

Price Information - CNY/USD Central Parity Rate Stands at 7.0796, Up 30 Pips

Details of International News

1．Covestro and XRG Clear Final Hurdles for Landmark Transaction

German chemical giant Covestro AG and Abu Dhabi-based XRG have obtained the final regulatory approval for their strategic cooperation, winning permission from Germany's Federal Ministry for Economic Affairs and Climate Action.

This decision removes the last obstacle under foreign investment regulations, paving the way for the transaction to be completed within days. Positioned as a cooperation that will reshape the global chemical industry, the partnership will drive the two parties to pursue ambitious goals in innovation, circular production, and digital transformation.

2. Lotte Chemical Plans to Shut Down Daesan Cracker in South Korea!

Multiple local South Korean media reported on November 25 that Lotte Chemical will permanently close its 1.1 million-ton/year naphtha cracker in Daesan, South Korea, though no specific closing date was mentioned.

The decision comes after Lotte and HD Hyundai Chemical announced a restructuring agreement in June. HD Hyundai Chemical also operates a naphtha cracker in Daesan with an ethylene capacity of 850,000 tons/year. The two companies had previously agreed to integrate and optimize their production facilities in the park.

Reports indicate that the move is seen as a response to the oversupply of regional and global olefins and derivatives caused by large-scale capacity expansion in China. Additionally, the South Korean government has promoted an industry restructuring plan agreed upon by major domestic producers. The closure of the Daesan cracker is expected to accelerate the restructuring process of other major petrochemical hubs such as Yeosu and Ulsan. The plan aims to cut a total of 2.7 million to 3.7 million tons/year of ethylene capacity.

3. BASF's New High-Performance Dispersant Production Line Officially Commences Operation in Nanjing, China

BASF's new high-performance dispersant production facility officially started operations at the Nanjing Jiangbei New Area New Materials High-Tech Park.

The investment will adopt Controlled Free Radical Polymerization (CFRP) technology to produce advanced dispersants and realize localized production. Combined with supply from the Herleen production base in the Netherlands, this capacity expansion will further enhance global supply capacity, making supply more reliable and flexible.

4. F1 Cars Adopt Bio-Based Materials! Syensqo Wins International Award

Syensqo, a global leader in advanced materials, won the "Green Tech Award" at the Race Tech World Motorsport Symposium for its bio-based MTM 49–3 epoxy prepreg.

Developed with 30% bio-sourced monomers, the product maintains the same mechanical strength, 190℃ glass transition temperature, and processability as traditional epoxy prepregs, while achieving a weight reduction of up to 40% compared to metal materials.

5. Pegasus Materials Promotes New Bio-Based Materials, Targeting Electronics and Aerospace 3D Printing

Pegasus Materials BV, a Dutch high-performance materials startup, announced the official launch of two new bio-based materials targeting electronic connectors and industrial 3D printing respectively.

At the same time, the company announced the completion of an extended seed round of financing, with new investor Ferment (a venture capital firm) joining, and existing investors LIOF and Fibrant BV also continuing to invest. This round of financing will accelerate the commercialization process of the company's products.

6. Lubrizol and Fulai New Materials Sign MOU to Promote Innovative Sustainable Coating Materials

Lubrizol Corporation and Zhejiang Fulai New Materials Co., Ltd. officially signed a Memorandum of Understanding (MOU) to establish strategic cooperation in innovative material fields such as bio-based coatings, degradable coatings, special printing coatings, and high-barrier flexible packaging coatings, jointly developing sustainable innovative coating materials.

According to the MOU, the two parties will set up a joint working group to systematically promote the development and application of technologies such as next-generation biodegradable environmental protection coating resins, functional coating resins, and high-performance inkjet resins through regular information sharing and joint R&D mechanisms.

This cooperation will combine Lubrizol's R&D advantages in specialty chemicals with Fulai New Materials' rich experience in coated composite material manufacturing and market applications, focusing on developing environmentally friendly material solutions such as repulpable and recyclable products to provide customers with more competitive offerings.

According to CCTV News, South Korea's ruling People Power Party submitted the "Special Act on Korea-U.S. Strategic Investment Management" to the National Assembly on November 26 local time. The act includes the establishment of a Korea-U.S. strategic investment fund and a Korea-U.S. strategic investment corporation to manage the fund.

In accordance with a previous agreement between South Korea and the United States, U.S. tariffs on South Korean-made cars and auto parts were reduced to 15% from December 1. Kim Byung-ki, floor leader of the People Power Party, submitted the act to the National Assembly on the same day, which is a follow-up measure to fulfill the Korea-U.S. Strategic Investment MOU signed on December 14.

Overseas Macroeconomic Market

【Taiwan Authorities Plan to Add $40 Billion in Military Spending; AIT Expresses Welcome; MOFA Responds】

According to The Paper, on November 26, Foreign Ministry Spokesperson Mao Ning hosted a regular press conference. An AFP reporter asked: Sandra Oudkirk, Director of the American Institute in Taiwan (AIT) Taipei Office, said today that she welcomes the $40 billion supplementary defense budget announced by the Taiwan region. What is the spokesperson's comment?

Mao Ning emphasized that China's position of opposing official and even military contacts between the United States and Taiwan is consistent. The Taiwan Democratic Progressive Party authorities' attempt to "resist reunification by force" and "seek independence through force" is doomed to failure.

【McKinsey Cuts About 200 Tech Jobs; "AI Replacement" Is Inevitable】

Consulting firm McKinsey laid off approximately 200 global technology jobs over the past week, joining the industry trend of automating some work with artificial intelligence (AI).

According to people familiar with the matter, as the company intensifies its adoption of AI technology, further layoffs across various functions cannot be ruled out in the next two years. They also stated that McKinsey is carefully evaluating which tasks can be completed by AI.

【Citi Hires Former Nomura and Wells Fargo Traders to Strengthen Asian Foreign Exchange Business】

Citigroup has hired seven professionals to help strengthen its foreign exchange business in Asia, including former traders from Nomura International and Wells Fargo. Nicky Lam, formerly with Nomura, has joined Citi's G-10 currency options trading team. Jonathan Chua, who previously worked at Wells Fargo and NatWest Markets, has joined Citi's foreign exchange trading department as a Singapore dollar trader.

According to a Citi statement, Manoj Goel, former Global Head of Corporate Sales for Global Markets at HSBC, has been appointed Head of Corporate Foreign Exchange Sales for the Indian Subcontinent. Cassalynne Lou has joined the corporate foreign exchange sales team in Singapore.

【Peskov: U.S. Peace Plan Can Serve as Basis for Negotiations】

On November 25 local time, Dmitry Peskov, Press Secretary of the Russian President, stated that the U.S. "28-point" new plan for ending the Ukraine crisis is of substantive significance and can serve as a basis for negotiations. Russia does not rule out the possibility of engaging with the United States on the peace plan.

On the same day, Russian Foreign Minister Sergei Lavrov said that Russia is not in a hurry to urge the United States to hold negotiations on the Ukraine issue, but hopes the U.S. side will inform the results of its consultations with Ukraine and Europe. He also accused Europe of interfering in the peace process through "leaks". (CCTV News)

Price Information

The CNY/USD central parity rate was reported at 7.0796, an increase of 30 pips; the central parity rate of the previous trading day was 7.0826, the official closing price of the previous trading day was 7.0938, and the night session closing price of the previous day was 7.0845.

【Upstream Raw Material USD Market Prices】

Ethylene Asia: CFR Northeast Asia USD 730/ton; CFR Southeast Asia USD 720/ton.

Propylene Northeast Asia: FOB South Korea average USD 695/ton; CFR China average USD 735/ton.

North Asia refrigerated cargo CIF price: Propane USD 518-520/ton; Butane USD 546-556/ton.

South China (China) refrigerated cargo CIF price for early December: Propane USD 561-571/ton; Butane USD 546-556/ton.

Taiwan region refrigerated cargo CIF price: Propane USD 518-520/ton; Butane USD 539-541/ton.

【LLDPE USD Market Prices】

Film: USD 835-855/ton (CFR Huangpu);

Injection Molding: USD 935/ton (CFR Huangpu).

【HDPE USD Market Prices】

Film: USD 880-900/ton (CFR Huangpu);

Injection Molding: USD 815-820/ton (CFR Huangpu);

Blow Molding (Hollow): USD 830/ton (CFR Huangpu);

Pipes: USD 1000/ton (CFR Huangpu).

【LDPE USD Market Prices】

Film: USD 990-1000/ton (CFR Huangpu);

Coating: USD 1190/ton (CFR Huangpu).

【PP USD Market Prices】

Injection Molding: USD 800/ton (CFR Huangpu);

Copolymer: USD 820-860/ton (CFR Nansha);

Film Grade: USD 990/ton (CFR Huangpu);

Transparent Grade: USD 1065/ton (CFR Huangpu);

Pipes: USD 1100/ton (CFR Shanghai).