Hainan's Zero-Tariff New Policy Takes Effect! Mitsui Chemicals' Profit Plunges 40%, Lanxess Hikes Adipic Acid Prices Globally

International News Highlights

Raw Material News - Mitsui Chemicals' Profit Drops 40% Amid Dual Pressure of Selling Price and Raw Material Cost

Automotive News - Japan's Import Car Sales Fall 12% YoY in January, EV Sales Surge 68%

Packaging News - EU Launches Groundbreaking Testing Technology, Fake Eco-Friendly Tableware to Be Barred

Electronics News - Avient Unveils New Product Line, Expands Halogen-Free Flame-Retardant TPE Portfolio

Medical News - Dual Breakthroughs in Sustainable Packaging Technology by Chugai Pharmaceutical with Bio-based PE and rPET

Macro News - Three Ministries Including MOF Issue Notice on Zero-Tariff Policy for Imported Commodities Consumed by Hainan FTP Residents

Price Information - RMB/USD Central Parity Rate at 6.9570, Down 37 Pips

International News Details

1. Mitsui Chemicals' Profit Drops 40% Amid Dual Pressure of Selling Price and Raw Material Cost

Mitsui Chemicals, Inc. announced that its profit plummeted 40% year-on-year in the first nine months of fiscal 2025 (ending December 31, 2025), with net profit falling to 22.6 billion Japanese Yen (approximately 144.3 million US Dollars). The company's sales revenue decreased 9.0% YoY to 1.2 trillion Japanese Yen, mainly affected by lower product prices driven by falling naphtha and other raw material costs and declining sales volume, with the basic materials and green materials business segments seeing a particularly significant drop.

Operating profit for the period stood at 68.0 billion Japanese Yen, a 10.3% YoY decline, primarily due to deteriorated inventory revaluation gains and losses caused by lower naphtha prices. Revenue of the basic materials and green materials segment fell by 86.3 billion Japanese Yen to 442.5 billion Japanese Yen, accounting for 36% of total sales. The segment's operating loss widened from 7.2 billion Japanese Yen in the same period last year to 12.8 billion Japanese Yen; despite fixed cost optimization through business restructuring, the loss further expanded due to falling raw material prices and a weak market environment.

Sales volume of phenolic products in the segment declined, while price adjustments for polyolefin products improved trade conditions to a certain extent. The operating rate of naphtha cracking units remained low due to shrinking downstream demand and scheduled maintenance.

2. BASF Partners with Changshuo New Materials for Localized Production of Infinergy® E-TPU

To actively promote the R&D and application expansion of Infinergy® E-TPU foamed materials in the Chinese market, BASF has recently signed a Memorandum of Understanding (MoU) with Jiangsu Changshuo New Materials, a leading Chinese expert in foamed materials.

Pursuant to the agreement, BASF will act as Changshuo's exclusive TPU material supplier, and the two parties will jointly develop customizable Infinergy® E-TPU foaming solutions to meet the diverse needs of customers in the Chinese market. The cooperation will focus on improving material performance, adopting supercritical fluid physical foaming technology without chemical foaming agents to deliver superior resilience, cushioning and durability, while reducing waste in the production process.

Meanwhile, the two parties will also conduct innovative R&D on material color, size and shape, aiming to provide products with higher design freedom to meet the diverse aesthetic and functional demands in China.

3. Lanxess Hikes Adipic Acid Prices Globally Due to Rising Costs

LANXESS, a leading specialty chemicals company, announced a global price increase for adipic acid with an average hike of 100 Euros per tonne applicable worldwide.

This price adjustment reflects sustained and accumulated cost pressures, with a particularly significant surge in raw material costs. Lanxess stated that despite the company's best efforts to control cost increases and maintain price stability, this adjustment is a necessary measure to ensure the long-term stability and sustainability of supply.

4. Avient Unveils New Product Line, Expands Halogen-Free Flame-Retardant TPE Portfolio

Avient Corporation, a global innovator in material solutions, announced the launch of the OnFlex™ NHFR 7001 series, further expanding its OnFlex™ NHFR halogen-free flame-retardant thermoplastic elastomer (TPE) portfolio.

Compared with Avient's previous generation of OnFlex™ halogen-free materials, the new series delivers enhanced flame retardancy for plastic products while providing customers with better mechanical properties and cost efficiency. The OnFlex™ NHFR 7001 series meets increasingly stringent regulatory requirements and the growing market demand for halogen-free flame-retardant materials.

Exclusively developed to help manufacturers comply with the flame retardant-related guidelines of the European Chemicals Agency (ECHA), the series meets the UL 94 V-0 flame retardancy rating standard and complies with REACH regulations and RoHS directives.

5. Lubrizol Launches Tolerathane™ TPU, Redefining Innovation Opportunities for Implantable Medical Devices

Lubrizol Corporation, a global leader in specialty chemicals, announced the official launch of Tolerathane™, a new medical-grade thermoplastic polyurethane (TPU) material exclusively developed to meet the evolving application needs of implantable medical devices.

Compared with other materials, Tolerathane™ TPU exhibits exceptional durability in harsh biological environments while maintaining excellent flexibility and mechanical toughness, and can be seamlessly adapted to standard thermoplastic processing technologies.

6. Dual Breakthroughs in Sustainable Packaging Technology by Chugai Pharmaceutical with Bio-based PE and rPET

The upgrade of pharmaceutical packaging sustainability is advancing continuously - even achieving breakthroughs in high-difficulty forms such as blister packaging. The anti-cancer drug packaging of Chugai Pharmaceutical Co., Ltd. of Japan is a model of this trend, winning the Grand Prize in the Pharmaceutical Category of the 2026 WorldStar Packaging Awards.

The Japanese enterprise stated that this sustainable and user-friendly packaging provides precise dosage units that meet the dual needs of medical staff and patients, while demonstrating the company's commitment to environmental responsibility. The packaging solution not only ensures drug stability but also comprehensively improves the ease of use of anti-cancer drugs for patients of all ages and with various types of cancer.

Replacing the traditional bottle packaging with fixed-dose blister packaging, the design optimizes clinical diagnosis and treatment processes and enhances the patient medication experience.

7. EU Launches Groundbreaking Testing Technology, Fake Eco-Friendly Tableware to Be Barred

Recently, the University of Pisa in Italy has developed an innovative method to detect and quantify PE/PP materials in molded pulp tableware, preventing the malicious addition of non-biodegradable substances in the production process of imported packaging.

Professor Erika Ribechini of the university said: "This analytical method can conduct efficient and reliable testing on samples with complex components, with short testing time and controllable costs." The advent of this measurement method is expected to have a significant impact on the export of eco-friendly tableware to the EU.

Currently, the new EU Certification Scheme for Industrially Compostable Materials and Products, officially implemented on January 1, 2026, clearly stipulates that the upper limit of the addition of non-degradable polymer polyethylene is 1%. However, there has been a lack of effective testing methods to verify whether enterprises comply with this limit requirement. The new testing tool developed by the University of Pisa has successfully filled this technical gap.

8. Henkel Announces Acquisition of Stahl, a Powerful Alliance to Explore the New Future of Specialty Coatings

Stahl, one of the global leaders in specialty coatings for flexible materials, and its shareholders Wendel (68.5% stake), BASF (16.1% stake) and Clariant (14.6% stake) announced the signing of an acquisition agreement with Henkel AG & Co. KGaA, with an enterprise value of 2.1 billion Euros.

Upon completion of the transaction, Wendel will end its 20-year holding of Stahl, and Henkel will officially take over, opening a new chapter of synergistic development between the two parties.

9. Japan's Import Car Sales Fall 12% YoY in January, EV Sales Surge 68%

The Japan Automobile Importers Association (JAIA) released data on February 5 showing that Japan's import car sales (excluding Japanese manufacturers) fell 12% YoY to 13,019 units in January. Pure electric vehicle sales surged 68% to 2,041 units, achieving growth after a month's decline.

Mercedes-Benz saw a 13% drop to 3,031 units, ranking first; Volkswagen sales stood at 1,528 units, a 41% decrease; BMW sales were 1,383 units, a 17% fall; BYD sales soared 3.4 times to 180 units.

Overseas Macro Market

Russian FM: Deteriorating US-Iran Ties Pose Potentially "Explosive" Impact on Middle East

According to a report by Russia Today on the 5th, Russian Foreign Minister Sergey Lavrov stated in an interview with the channel that the current deterioration of US-Iran relations poses a potentially "explosive" impact on the entire Middle East region.

Russian Presidential Envoy: Progress Being Made in Ukraine Peace Treaty Negotiations

According to a TASS report on the 5th, Russian Presidential Envoy Dmitriev stated on the day that despite interference, progress is being made in the negotiations on the Ukraine peace treaty.

US-Iran Nuclear Talks to Resume Soon, Iran Insists on Focusing Only on Nuclear Issues

Iranian Foreign Minister Abbas Araghchi posted on social media on the evening of the 4th that Iran is scheduled to hold nuclear talks with the United States in Muscat, the capital of Oman, on the 6th. According to a Reuters report, the main current disagreement between the two sides is that Iran insists the talks be limited to nuclear issues, while US Secretary of State Marco Rubio said the talks must also include Iran's ballistic missile program.

Israeli Security Cabinet to Hold Meeting on 5th

Against the backdrop of the upcoming resumption of US-Iran talks, Israel's Security Cabinet is scheduled to hold a meeting on the 5th. It is reported that the participating ministers were not aware of the meeting content in advance. On the 3rd, Israeli Prime Minister Benjamin Netanyahu met with US Presidential Envoy Witkoff in Jerusalem, where Israel requested "freedom of action" from the US on the Iran issue.

Greenland Sets New January High Temperature Record, Climate Change Reshaping Its Economic Structure

According to a Reuters report on the 4th, Greenland, once coveted by Donald Trump, has just experienced its warmest January on record. Greenland's warming rate is far higher than the global average, which is profoundly reshaping the development prospects of its fisheries, mining and other sectors.

Three Ministries Including MOF Issue Notice on Zero-Tariff Policy for Imported Commodities Consumed by Hainan FTP Residents

The notice stated that imported commodities purchased by residents of the Hainan Free Trade Port (FTP) at designated business premises will be exempted from import tariffs, import link VAT and consumption tax within the scope of duty-free quota and commodity list.

The zero-tariff imported commodities are managed under a positive list, with the specific scope shown in the annex. With valid ID cards, residence permits, social security cards or residence documents, Hainan FTP residents can purchase the listed imported commodities at designated business premises for an unlimited number of times and pick up the goods on site. The cumulative annual duty-free purchase amount per person shall not exceed 10,000 RMB.

Price Information

The RMB/USD central parity rate was set at 6.9570, down 37 pips; the central parity rate of the previous trading day was 6.9533, the official closing price at 16:30 on the previous trading day was 6.9376, and the overnight offshore close was 6.9450.

Upstream Raw Material USD Market Prices

Ethylene: CFR Northeast Asia 695 USD/ton (down 5 USD/ton), CFR Southeast Asia 680 USD/ton (stable)

Propylene (Northeast Asia): FOB Korea average 790 USD/ton (stable), CFR China average 835 USD/ton (stable)

North Asia refrigerated cargo CIF: Propane 568-570 USD/ton; Butane 588-590 USD/ton

South China refrigerated cargo CIF (early March arrival): Propane 599-609 USD/ton; Butane 594-604 USD/ton

Taiwan refrigerated cargo CIF: Propane 568-570 USD/ton; Butane 588-590 USD/ton

LLDPE USD Market Prices

Film grade: 830 USD/ton (CFR Xiamen); Injection molding grade: 910 USD/ton (CFR Xiamen)

HDPE USD Market Prices

Film grade: 910 USD/ton (CFR Huangpu); Injection molding grade: 800 USD/ton (CFR Huangpu); Blow molding grade: 850 USD/ton (CFR Huangpu); Pipe grade: 1000 USD/ton (CFR Huangpu)

LDPE USD Market Prices

Film grade: 1035 USD/ton (CFR Huangpu); Coating grade: 1240 USD/ton (CFR Huangpu)

PP USD Market Prices

Injection molding grade: 830 USD/ton (CFR Dongguan); Copolymer grade: 890 USD/ton (CFR Nansha); Film grade: 980 USD/ton (CFR Huangpu); Transparent grade: 1075 USD/ton (CFR Huangpu); Pipe grade: 1130 USD/ton (CFR Shanghai)