Sumitomo Chemical Restructures Polymer Business, 7 Major Oil-Producing Countries Announce Production Increase in July; China’s Automotive Exports Accelerate

International News Digest:

Raw Material News - Sumitomo Chemical Restructures Its Polymer Business

Packaging News - Three major environmental groups sue over California’s new plastic reduction regulations, alleging loopholes weaken the law’s effectiveness.

Automotive News - Chery Lands in the UK, SAIC Plans to Build a Factory in Spain, Chinese Auto Brands Accelerate Localization Production

Electronics News - Another Boost for Global Lithium Battery Supply Assurance! UBE MAXELL Expands Separator Base Film Capacity in Two Phases

Macro Headlines - Israeli military assesses that the conflict with Iran may continue for several days

Price information: The RMB central parity rate against the U.S. dollar was set at 6.8198, down 41 points.

The following is the details of international news:

Sumitomo Chemical Restructures Its Polymer Business

Sumitomo Chemical announced that the company willJuly 1, 2026Implement the following organizational structure adjustment:

The Polyolefins Business Unit and the Automotive Materials Business Unit were merged to formBasic Polymers Business DivisionAt the same time, the Business Planning Management Department and the Sales Department will be placed under the jurisdiction of this business division.

The licensing-related operations previously managed by the Planning and Coordination Office of the Basic & Green Materials Division, together with the catalyst-related operations under the Basic Materials Division, Polyolefins Division, and Methyl Methacrylate (MMA) Division, will be integrated to establish a new organization.Licensing and Green Solutions Business UnitThe Global Licensing Department, which is responsible for overall coordination among the various business divisions and technology licensing, and the Catalyst Solutions Department, which handles catalyst sales and related matters, are both placed under the management of this business division.

2. Three major environmental groups sue California over new plastic reduction regulations, alleging that loopholes in the rules weaken the law’s effectiveness.

Recently, three major environmental organizations filed a lawsuit against the California Department of Resources Recycling and Recovery (CalRecycle), alleging that the state had previously implemented the above-mentioned measures.Plastic Packaging Innovation ActThe accompanying new regulations significantly relax the requirements and contain multiple loopholes, making it difficult for the core objectives of the bill to be implemented.

The Natural Resources Defense Council (NRDC), the California Against Waste Foundation, and Oceana have filed a lawsuit and petition in the San Francisco Superior Court. The three parties argue that the California Department of Resources Recycling and Recovery should be protecting public health and the ecological environment by reducing plastic pollution and increasing recycling rates. However, the rules issued by the department have not implemented the requirements of Senate Bill 54 (the Plastic Pollution Prevention and Producer Responsibility Act).

On May 1, the California Department of Resources Recycling and Recovery formally finalized the implementation rules for Senate Bill 54. The Natural Resources Defense Council and the California Against Waste Foundation believe that the revised rules have given the plastic packaging industry a blank check.A huge regulatory loophole, violating current laws.

3. Chery establishes local production in the UK, SAIC plans to build a factory in Spain — Chinese auto brands are accelerating localization.

Nissan Motor recently announced unilaterally that it has formally signed a non-binding memorandum of understanding on cooperation with Chery International UK. Under the agreement, the two sides plan to carry out contract manufacturing at Nissan’s Sunderland plant in the UK. Nissan’s own models, including the Qashqai, Juke, and Leaf, will be consolidated onto the second production line, while the idle production lines will fully take on Chery’s localized manufacturing needs. If the talks proceed smoothly, the plant will begin producing Chery models as early as fiscal year 2027 (starting April 2027). The vehicles to be produced will be passenger cars developed for the UK market, and the specific models have not yet been disclosed.

Accelerating its global expansion, SAIC Motor has also taken a crucial step forward. On June 1, the government of Spain’s Galicia autonomous community announced that MG, a brand under SAIC Motor, plans to build an electric vehicle factory at the Port of Ferrol in the region, which would become its first production base in the European Union. According to the plan, the project will involve an initial investment of about €200 million (approximately RMB 1.58 billion), though it still requires final approval from the Spanish central government.

4. Global Lithium Battery Supply Security Gets Another Boost! UBE Maxell to Expand Separator Base Film Capacity in Two Phases

According to Zhuansu Vision News, a reliable supply of separators remains a critical bottleneck for lithium-ion battery manufacturers seeking to expand capacity, especially as demand from automotive and energy storage applications continues to outpace existing production capacity.UBE MAXELL Co., Ltd.(Ube Industries, Ltd. and Maxell, Ltd.'s joint venture) announced that it will expand its separator base film production facilities at Sakai Works in phases, with the aim of increasing production capacity by approximately 50% over the current level.

The expansion will begin after the completion of the separator base film production facility currently under construction at the Sakai Plant (scheduled for completion in autumn 2026). According to UBE MAXELL, the first phase of construction for the new facility is planned to begin in...Fiscal Year 2026Commencement of work, the second phase is scheduled forFiscal Year 2029Start work.

5. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman announce production increases in July.

On June 7, the Organization of the Petroleum Exporting Countries (OPEC) said in a statement that seven major OPEC+ oil-producing countries had decided to increase crude oil output by 188,000 barrels per day in July. This marks the fourth consecutive month that major oil-producing countries have announced output increases.

Representatives of Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman held an online meeting on the 7th to discuss the situation and outlook of the international oil market. The seven countries decided to increase production by 188,000 barrels per day, the same increase as in the previous month. A statement issued after the meeting said that, in order to maintain stability in the oil market, the seven countries would flexibly adjust the pace of production increases according to market conditions.

6. TÜV SÜD completed a rigorous verification of Envalior’s core product life cycle assessment.

Recently, Envalior announced that TÜV SÜD, an international third-party testing, inspection and certification organization, has completed an independent and rigorous review of the life cycle assessments (LCAs) for Envalior’s four major product lines. The review covered most products across the four major series, includingDurethan^®PA6 (standard and recycled-based products), Pocan^® PBT、Tepex^®Dynalite thermoplastic composite materials and Xytron^™ PPSThis is not only a key milestone in NHOA Energy’s “CARES” sustainability strategy, but will also strongly support customers in preparing more accurate climate reports.

7. Nestlé India collected and processed 25,000 tonnes of plastic packaging in FY25–26.

According to Nestlé India, the total amount of plastic packaging collected and processed by the company in the fiscal year 2025-26 will be equivalent to the total amount of plastic packaging it puts on the market. This means that approximately 25,000 tons of plastic packaging will be processed through recycling and other plastic recovery schemes.

The company stated that it has been maintaining this since 2020.Plastic neutralizationNestlé India remains committed to continuously improving the supporting system to enable responsible plastic waste management. As part of its packaging strategy, Nestlé India is working to reduce plastic usage and increase the share of recycled materials. Related initiatives include redesigning coffee sachets to use less plastic; continuing to use thermoformed cups for Maggi cup noodles; and increasing the proportion of recycled plastic in packaging for coffee, ketchup, chocolate, and confectionery.

Overseas Macro Markets:

[Iran’s Revolutionary Guard: We have responded to Israel’s attack on Iranian petrochemical enterprises.]

The Public Relations Department of Iran’s Islamic Revolutionary Guard Corps announced that, in response to the enemy’s attack on an Iranian petrochemical enterprise, the Guard had earlier launched a missile strike on a similar enterprise in Haifa, Israel. The Guard warned that by attacking civilian targets and oil industry targets, Israel had initiated a “dangerous course of action.” Iran’s strikes would extend to all energy targets in the region, and the consequences for the global economy should be borne by the United States.

[Israeli military assesses that fighting with Iran may last several days]

According to Israeli sources on the 8th, the Israel Defense Forces estimate that the conflict with Iran is expected to last for several days, and the IDF is preparing for a large-scale mobilization of reserves. The military has not yet confirmed this information.

[The Israeli military claims to have destroyed Iran's "strategic defense systems" in multiple locations.]

The Israel Defense Forces stated on the 8th that the air force dispatched dozens of aircraft that day to strike and destroy "strategic defense systems" deployed by Iran in multiple locations. The statement did not mention any casualties or specific strike locations resulting from the airstrike.

Iran’s Revolutionary Guard says Israel has launched a dangerous operation.

Today (June 8), the Public Relations Department of the Iranian Islamic Revolutionary Guard Corps announced that, in response to the enemy's aggression against Iran's petrochemical enterprises, the Revolutionary Guard had earlier launched missile attacks on similar enterprises in Haifa, Israel. The Guard warned that Israel has initiated a "dangerous operation" by attacking civilian and oil industry targets, and that Iran's strike range will cover all energy targets in the region, with the consequences for the global economy to be borne by the United States.

Iran’s Revolutionary Guard launches “Nasr” military operation to strike Israel.

According to Iran’s Tasnim News Agency on the 8th, Iran’s Islamic Revolutionary Guard Corps said in a statement that day that it had launched a military operation code-named “Nasr” to strike multiple air bases inside Israel.

Price Information:

The central parity rate of the RMB against the US dollar is reported at 6.8198, down 41 points; the previous trading day's central rate was 6.8157, the official closing price of the previous trading day was 6.7712, and the night session closing price was 6.7878.

[Upstream Raw Material USD Market Prices]

On June 5, CFR Northeast Asia ethylene was USD 920/ton, down USD 10/ton; CFR Southeast Asia was USD 950/ton, down USD 150/ton.

The Northeast Asia propylene FOB Korea average price fell by $20/ton to $1,110/ton, and the CFR China average price fell by $20/ton to $1,130/ton.

North Asia CFR price for refrigerated cargo: propane at USD 801-811/ton; butane at USD 851-861/ton.

The CIF price for South China frozen goods in July is as follows: propane at $893-903 per ton; butane at $953-963 per ton.

Taiwan region frozen cargo CIF price: propane at USD 801-811/ton; butane at USD 851-861/ton.

LLDPE USD Market Price

Film: USD 1,300/ton (CFR Huangpu);

[HDPE USD market price]

Film: $1270/ton (CFR Huangpu);

Hollow: USD 1,360/ton (CFR Yantian);

Injection molding: USD 1,320/ton (CFR Yantian);

LDPE USD market price

Thin film: USD 1,430/ton (CFR Huangpu);

PP USD market price

Average: $1400/ton (CFR Huangpu);

Copolymer: USD 1,430/ton (CFR Nansha);

Membrane material: $1580/ton (CFR Huangpu);

Transparent: USD 1,485/ton (CFR Huangpu);