LG Chem Declares Force Majeure on DOTP Exports! SABIC Joins Five Giants to Redefine EV Safety

International News Brief

Feedstock: LG Chem declares force majeure on Di-Octyl Terephthalate (DOTP) export contracts.

Recycling: US scientists develop new flexible plastic recycling technology for polypropylene and polyethylene.

Automotive: A trillion-yuan business hidden in battery covers? SABIC teams up with five giants to redefine electric vehicle safety.

Aerospace: Meeting stringent FAA standards! Avient launches PFAS-free thermoplastic materials for aircraft interiors.

Macro: Traders now see a 50% probability of a 2026 interest rate hike by the Bank of England.

Price: The central parity rate of RMB against the US dollar is 6.9025, down 18 points.

Detailed International News

1. Severe Supply Shortage! LG Chem Declares Force Majeure on Di-Octyl Terephthalate (DOTP) Export Contracts

According to a customer letter obtained by S&P Global Commodity Insights (Platts), LG Chem Ltd. declared force majeure on certain Di-Octyl Terephthalate (DOTP) export contracts for March–April shipments starting March 6, due to severe disruptions at its oxo-alcohol plants caused by geopolitical tensions.

In the letter, LG Chem stated:

“Recent geopolitical tensions have affected the supply of naphtha and propylene, and our oxo-alcohol facilities are currently facing severe disruptions. As a result, the supply of alcohols, key feedstocks for plasticizer production, has been severely constrained.”

2. Meeting Stringent FAA Standards! Avient Launches PFAS-Free Thermoplastic Materials for Aircraft Interiors

Avient recently introduced ColorFast SFT5500 to expand its aircraft interior material product line.

This product is a high-performance, PFAS-free thermoplastic designed to meet the requirements of Section IV, 55/55 OSU heat release in Appendix F of FAA 14 CFR 25.853, while featuring low smoke and low toxicity.

In the aerospace market, PFAS-free thermoplastic systems that achieve 55/55 OSU performance while maintaining low smoke and low toxicity remain limited.

ColorFast SFT5500 is a high-performance thermoplastic platform developed to address this demand, engineered specifically for injection-molded interior components.

3. US Scientists Develop New Flexible Plastic Recycling Technology for PE and PP

A research team at the University at Buffalo, State University of New York, recently announced the development of an innovative recycling technology for polyethylene (PE) and polypropylene (PP).

This technology breaks through the limitations of traditional mechanical recycling on flexible plastic films, providing a new pathway for the recycling of the world’s two most widely produced plastics.

Related research has been published in authoritative academic journals including Polymers, International Journal of Heat and Mass Transfer, and Journal of Polymer Science.

Polyethylene and polypropylene, both part of the polyolefin family, are the most widely used plastics globally, found in packaging, food containers, plastic films, and various consumer goods.

In 2024, global plastic production exceeded 359 million metric tons, with polyolefins accounting for more than half.

However, flexible plastic films are difficult to process via traditional mechanical recycling due to their structural characteristics, often disposed of in landfills or released into the environment, becoming a major source of plastic pollution.

4. A Trillion-Yuan Business Hidden in Battery Covers? SABIC Joins Five Giants to Redefine EV Safety

While the world focuses on improving battery energy density and charging speed, a quiet revolution in electric vehicle safety, efficiency, and cost is taking place in battery pack enclosures.

Recently, chemical giant SABIC, together with five industry leaders — Engel, Siebenwurst, Forward Engineering, Ensinger, and Envalior — jointly launched a revolutionary hybrid composite battery cover.

This innovation directly addresses core industry pain points and is likely to set new safety and performance standards for next-generation electric vehicle battery systems.

5. UBE Decides to Establish UPCE in Europe for Chemical Production and Sales

On March 4, 2026, UBE Corporation resolved at its board meeting to establish UBE POLYMERS & CHEMICALS EUROPE S.L.U. (UPCE).

In Europe, UBE has traditionally operated mainly through its fully-owned subsidiary UBE CORPORATION EUROPE S.A.U. (UCE).

However, following the completion of the acquisition of Lanxess’s polyurethane systems business in April 2025, the number of subsidiaries under its control has increased.

As a result, UBE has decided to establish UPCE and transfer the operational functions of UCE to UPCE, making UPCE an operating company responsible for chemical production and sales.

Meanwhile, UCE will serve as the regional holding company in Europe, reorganizing the group’s operational structure in Europe.

6. 95% Recovery Rate! Swiss Factory Revives Polyester-Cotton Blends

Amid a growing global textile waste crisis, less than 1% of the annual textile output of over 1.2 billion metric tons is recycled.

Against this backdrop, chemical recycling technology is seen as a key solution to break the linear “fast fashion” model and build a circular economy.

Recently, international innovator Worn Again Technologies announced the launch of its Accelerator plant in Winterthur, Switzerland, injecting new momentum into the large-scale application of textile chemical recycling.

Worn Again Technologies’ Accelerator plant showcases its proprietary chemical recycling technology, which efficiently separates and recycles polyester and cellulose from waste textiles — especially polyester-cotton blends, which have long been difficult to process.

The process uses a multi-solvent system that effectively removes impurities such as dyes and spandex.

Polyester recovery exceeds 95%, and solvent recycling efficiency also reaches above 95%, balancing economic and environmental performance.

Overseas Macro Markets

Iraq’s crude oil output plunges nearly 70%: Iraqi officials call it the most severe operational threat in over 20 years.

India approves docking request: India allows three Iranian vessels to dock at Indian ports at Iran’s request.

Bank of England rate hike odds: Traders price in a roughly 50% chance of a 2026 rate hike.

Europe becomes top arms importer: SIPRI reports Europe was the world’s largest arms-importing region in the past five years.

Iran elects new Supreme Leader: Iranian factions voice support for the new leadership.

Regional conflicts expand: US and Israeli strikes against Iran enter day 10; civilian casualties reported across Gulf states.

Saudi Arabia supplies crude via spot market: Aramco tenders crude as Red Sea and Strait of Hormuz disruptions hit contractual deliveries.

Bahrain refinery targeted: A refinery of Bahrain’s national oil company catches fire after drone attacks; civil defense alerts issued.

Price Information

CNY/USD Central Parity: 6.9025, down 18 points from the previous trading session.

US Dollar Feedstock Prices (March 6)

CFR Northeast Asia: 910 USD/MT (+60 USD/MT)

CFR Southeast Asia: 900 USD/MT (+80 USD/MT)

Propylene FOB Korea: 890 USD/MT (+30 USD/MT)

Propylene CFR China: 985 USD/MT (+45 USD/MT)

PE & PP US Dollar Markets

LLDPE Film: 1160 USD/MT (CFR Xiamen)

LLDPE Injection: 1250 USD/MT (CFR Dongguan)

LDPE Film: 1350 USD/MT (CFR Dongguan)

PP Homopolymer: 1130 USD/MT (CFR Huangpu)

PP Copolymer: 1180 USD/MT (CFR Huangpu)

PP Transparent: 1450 USD/MT (CFR Huangpu)

PP Pipe: 1480 USD/MT (CFR Shanghai)

HDPE categories showed no available quotes at press time.