【Overseas Highlights】U.S. and Iran Sign Memorandum of Understanding! Covestro Advances Fossil-Free Aniline Production, Türkiye Launches Anti-Dumping Investigation

News Highlights:

Raw Material News – 65 Million Yuan! Covestro Develops Bio-Based Aniline: Is the Global MDI Industry Chain Going “Fossil-Free”?

Home News - Teijin Frontier expands thermal insulation fiber capacity, involving PTT and recycled polyester fibers

Automotive News - Turkey launches anti-dumping investigation into Chinese polyamide and high-strength polyester tire cord fabric.

Macro news: crude oil stranded in the Persian Gulf is about to be released in large quantities.

Price information - The central parity rate of the RMB against the US dollar was 6.8130, down 34 points.

The following are the details of international news:

65 Million Yuan! Covestro Develops Bio-Based Aniline—Is the Global MDI Industry Chain About to “Go Fossil-Free”?

Recently, Covestro announced the launch of the Bio4PURConti project (Biobased Continuous Production for the Sustainable Polyurethane Industry) and will serve as the project coordinator for this groundbreaking EU-funded initiative. The total budget for the project is €8.4 million, including €7 million in EU funding, and it is planned to run for 42 months.

The project aims to develop the world’s first continuous production process for bio-based aniline. Aniline is a key raw material in the plastics and chemical industries, especially for the production of MDI, which is a core structural unit of polyurethane. Covestro, as one of the world’s leading aniline producers, has an annual production capacity of more than 1 million tons.

D3O and KINGSTEEL Launch Strategic Partnership Focused on Next-Generation High-Performance Supercritical Foaming Materials

Recently, KINGSTEEL visited D3O, a global leader in advanced protective materials, and the two parties officially launched a strategic partnership focused on next-generation supercritical fluid foaming (SCF) applications and advanced manufacturing solutions. This collaboration combines the complementary strengths of both parties in materials science and manufacturing technology to jointly explore future opportunities in high-performance protective applications.

COIM is investing $50 million to expand its specialty chemicals manufacturing plant in the United States, including a new cashew nut shell liquid (CNSL) polyol production line.

Specialty chemical manufacturerCOIMCOIM USA will invest $50 million in the TexAmericas Center located in Texarkana, Texas. This center is an industrial park that integrates advanced manufacturing, logistics, and rail transportation. This project builds on the company's initial investment in the industrial park in 2024. At that time, COIM USA acquired a 20-acre parcel of land, which includes a 25,000-square-foot rail transportation facility as well as existing logistics and transshipment infrastructure.

The expanded plant will serve as the company’s manufacturing and distribution platform in the south-central region of the United States. The facility will also support the launch of a new line of renewable polyols, primarily made from cashew nutshell liquid (CNSL), a rapidly renewable plant-based raw material. This new product line complements COIM USA’s existing Isoexter polyester polyol portfolio and expands the company’s range of sustainable material offerings for North American customers.

Turkey Initiates Anti-Dumping Investigation into Polyamide and Polyester High-Tenacity Yarn Cord Fabric (for Tires) from China

The Turkish Ministry of Trade issued Announcement No. 2026/9 stating that, upon the request of Turkish producers, regarding products originating from China and Vietnam.PolyamideInitiated an anti-dumping investigation on tire cord fabric made of high-tenacity yarns of nylon or polyester. The dumping investigation period is from October 1, 2024 to September 30, 2025, and the injury investigation period is from January 1, 2022 to September 30, 2025. The products under investigation include, originating from China, fabrics (tire cord fabric) woven from high-tenacity yarns made of nylon or other polyamides and treated with rubber impregnation, for use in inner and outer tires of various vehicles, as well as fabrics (tire cord fabric) originating from China and Vietnam, woven from high-tenacity yarns made of polyester and treated with rubber impregnation, for use in inner and outer tires of various vehicles. The Turkish tariff codes of the products concerned are 5902.10.10.00.00 and 5902.20.10.00.00. This notice shall enter into force on the date of its publication.

Teijin Frontier expands insulation fiber production capacity, involving PTT and recycled polyester fibers.

Teijin Frontier, a Teijin Group company, has announced plans to add new production equipment for OCTAIR™ polyester thermal insulation fiber at its Matsuyama Plant in Ehime Prefecture, with an investment of several hundred million yen. The new production line will increase capacity for the OCTAIR™ product series to meet growing demand in the apparel and bedding sectors for high-performance down-alternative filling materials. The new equipment is expected to begin operations in March 2027.

Sailun Announces Establishment of Second Tire Company in Egypt

On June 17, Sailun Groupissued an announcement on the Shanghai Stock Exchange stating that,Plan to invest $1.141 billion (equivalent to €980 million) in Egypt to launch a large-scale tire production expansion project, significantly increasing the capacity of the local production base to meet the continuously growing market demand in Africa, Europe, and North America.

Sailun's announcement states that it plans to implementEgypt Tire Capacity Expansion ProjectUpon completion, the planned annual production capacity will be 27 million passenger radial tires, 1.65 million truck and bus radial tires, and 20,000 tons of off-the-road engineering tires.

The total project investment is USD 1.141 billion, including USD 1.09 billion in construction expenditure, USD 42.10 million in working capital, and USD 9.19 million in construction period interest.

According to the announcement, the project is intended to better adapt to and meet the needs of customers in the global market, in line with global industrial development trends and the company’s international strategic layout, thereby comprehensively enhancing the Group’s overall strength and global core competitiveness.

Overseas Macro Markets:

[Crude Oil Trapped in the Persian Gulf About to Be Released in Large Volumes] A wave of crude oil that had previously been trapped inside the Strait of Hormuz is about to flood into the Asian market, suddenly leaving the region—which had successfully made up for the supply shortfall over the past few weeks—facing a supply glut. According to data from Signal Group, there are currently about 31 very large crude carriers stranded in the Persian Gulf, with these tankers carrying a total of about 62 million barrels of crude oil. Once the strait reopens, they will begin setting sail one after another. However, the actual number may be even higher, as some vessels may have turned off their satellite positioning transponders.

German Defense Minister Boris Pistorius has called on the United States to better coordinate its plans to reduce military forces in Europe in order to prevent the continent from being left isolated and defenseless in the event of armed conflict.

On June 18, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A Reuters journalist asked about the statement issued at the G7 summit, which mentioned a commitment to reduce reliance on Chinese rare earths and critical minerals. Lin Jian responded that China's position on maintaining the stability and security of the global supply chain for critical minerals remains unchanged, and all parties have a responsibility to play a constructive role in this regard. He stated that China's efforts to regulate and improve its export control system align with international practices and aim to better maintain world peace and regional stability, as well as fulfill international obligations such as non-proliferation. We urge the G7 to genuinely adhere to market economy principles and international trade rules, and to stop undermining the international economic and trade order with rules from a small circle.

[Ministry of Foreign Affairs: Hope the U.S. and Iran will approach the second phase of talks with a rational and pragmatic attitude] According to reports, the United States and Iran have signed a memorandum of understanding on the first phase. When answering a question at the regular press conference on the 18th, Foreign Ministry spokesperson Lin Jian said that the signing of the first-phase memorandum of understanding by the U.S. and Iranian sides is of positive significance for easing tensions and consolidating the momentum of the ceasefire, and China welcomes this. China hopes that all relevant parties, including the U.S. and Iran, will uphold the spirit of contract and effectively deliver on their commitments. Lin Jian said that China hopes both the U.S. and Iran will approach the second phase of talks with a rational and pragmatic attitude, move toward each other, and work together to strive for positive results in the next phase of negotiations.

[Israel Attacks Two Locations in Southern Lebanon] According to Lebanon's "Al-Maida" television station, the Israel Defense Forces launched attacks on two locations in southern Lebanon on the morning of the 18th, resulting in one death and one injury. The report stated that the Israeli military shelled the town of Foukah in the Nabatiyeh region, while also conducting a drone strike on the village of Taybeh in the same area. According to Iran's Tasnim News Agency, Iranian Foreign Ministry spokesman Baghaei stated on the 18th that if Israel continues its attacks on Lebanon, it will be seen as a violation of the commitments made by the United States. Both parties have included clauses in the memorandum of understanding regarding the immediate and permanent cessation of military operations along all fronts, including Lebanon.

Goldman Sachs said oil flows through the Strait of Hormuz may only be able to recover to about 70% of prewar levels, as regional producers turn to alternative routes. Analysts including Yulia Zhestkova Grigsby wrote in a June 17 report titled “70% of Prewar Strait of Hormuz Flows May Become the New 100%” that for Gulf crude exports to return to prewar levels, flows through the Strait of Hormuz may need to increase by 13 million barrels per day from current levels.

Trump says he does not oppose Iran possessing ballistic missiles. As the United States and Iran signed a memorandum of understanding, U.S. President Donald Trump said he does not oppose Iran having ballistic missiles, a position firmly opposed by America’s staunch ally Israel. Speaking to reporters on the 17th after attending the G7 summit in France, Trump said, “If other countries have them and Iran does not, that is a bit unfair to Iran.” “If Saudi Arabia and Qatar have them—and they certainly do have some—I would say that, proportionally, it is acceptable for Iran to have ballistic missiles.”

Price information:

The central parity rate of the RMB against the U.S. dollar was set at 6.8130, down 34 pips; the previous trading day’s midpoint was 6.8096, the official closing rate was 6.7569, and the overnight session closed at 6.7630.

[Upstream Raw Material USD Market Prices]

On June 18, CFR Northeast Asia ethylene fell by $25/ton to $875/ton, while CFR Southeast Asia remained stable at $905/ton.

The average FOB Korea price for propylene in Northeast Asia fell by USD 35/ton to USD 1,020/ton, while the average CFR China price fell by USD 50/ton to USD 1,020/ton.

North Asia refrigerated cargo CFR: propane USD 631–633/ton; butane USD 631–633/ton.

The CIF price of frozen goods in South China in July is as follows: propane 689-699 USD/ton; butane 709-719 USD/ton.

CIF Taiwan refrigerated cargo prices: propane USD 631–633/mt; butane USD 631–633/mt.

LLDPE USD market price

Film: USD 1,200/ton (CFR Huangpu);

HDPE USD market price

Film: USD 1,170/ton (CFR Huangpu);

Hollow: USD 1,300/ton (CFR Yantian);

Injection molding: USD 1,260/ton (CFR Yantian);

[LDPE USD Market Price]

Film: USD 1,350/ton (CFR Huangpu);

[PP USD Market Price]

Junjun: $1360/ton (CFR Huangpu);

Co-polymer: $1370/ton (CFR Nansha);

Membrane material: USD 1,560/ton (CFR Huangpu);

Transparent: $1455/ton (CFR Huangpu).

Editor: Winnie