BASF Announces Price Hikes, India Faces Severe Petrochemical Feedstock Shortage, Nissan to Cut Production at Kyushu Plant

International News Brief:

Raw Material News: Clariant × Borealis × Sintef Join Forces: Convert Waste Plastic into Cracking Feedstock

Petroleum News: India Falls into Petrochemical Feedstock Shortage Crisis

Automotive News: Nissan to Cut Production at Kyushu Plant Amid Stalled Middle East Exports

Packaging News: GCR and RIGK Launch Advanced Industrial Recycling Trials for Post-Consumer Packaging

Macro News: Iranian FM Says Assassination of Larijani Will Not Shake Iran’s Political Structure

Details of International News:

1. India Falls into Petrochemical Feedstock Shortage Crisis

Recently, India’s Ministry of Petroleum and Natural Gas issued a mandatory order requiring all refineries operating in India to prioritize all propane and butane produced, recovered, or fractionated for the manufacturing of civilian liquefied petroleum gas (LPG), exclusively supplied to three state-owned oil marketing companies: Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL).

Following the order, petrochemical companies in India have faced severe feedstock shortages, directly impacting the operation of downstream chemical plants.

After the government ban, polymer producers in India are confronting large-scale feedstock shortages. The market widely believes the impact on the polypropylene (PP) industry chain is far greater than that on polyethylene (PE).

Many industry insiders note that operating rates of state-owned PP producers in India are expected to drop by 30%–40%, while non-integrated enterprises will face the double blow of propylene shortages and soaring naphtha prices.

2. Pilot Success! Clariant × Borealis × Sintef Join Forces: Convert Waste Plastic into Cracking Feedstock

Recently, Clariant, in cooperation with Borealis and Norway’s Sintef research institute, has successfully completed pilot verification of waste plastic pyrolysis oil upgrading technology.

The project aims to upgrade pyrolysis oil (pyoil) so that it can be used as feedstock for steam crackers and then reused as raw material for new polyolefins.

The process is centered on Clariant’s proprietary HDMax catalyst.

Tests conducted at Sintef’s pilot plant show that pyrolysis oil derived from waste plastic can be converted into feedstock fully meeting the quality requirements of steam cracking units.

The process achieves:

Complete saturation of dienes to avoid the formation of sticky, resin-like deposits

Removal of impurities such as oxygenates, nitrogen compounds, and halogenated compounds

3. Breaking Industry Barriers! ExxonMobil Partners with Reifenhäuser to Develop High-Performance PCR Stretch Hood Film

ExxonMobil has newly launched ExxonMobil Signature Polymers, a brand integrating its polyolefin products. Recently, it introduced a breakthrough stretch hood film with a post-consumer recycled (PCR) content of up to 35%.

This innovative product was co-developed by ExxonMobil and Reifenhäuser, solving an industry challenge of applying household-sourced PCR (often with contamination and inconsistent quality) in high-performance industrial packaging.

This advanced stretch hood film combines cutting-edge materials and processing technology to convert low-quality PCR into a high-performance solution.

The company stated that this achievement demonstrates its strong commitment to sustainability, technological innovation, and whole-industry-chain collaboration.

4. Arkema Expands KYNAR® PVDF Capacity in China to Support Strong Market Growth

Arkema announced that the Kynar® PVDF capacity at its Changshu, China site will be increased by 20%, with the new production unit to start up in 2028.

The additional capacity is designed to support sustained strong demand growth across key markets, including lithium-ion batteries for electric vehicles (EV) and energy storage systems (ESS), high-performance coatings, chemical processing, semiconductor manufacturing, water treatment, and wire & cable.

The project will strictly adhere to the highest standards for operational excellence, reflecting Arkema’s ongoing commitment to upgrading manufacturing operations at its global facilities.

5. Nissan to Cut Production at Kyushu Plant Amid Stalled Middle East Exports

Affected by disrupted export shipments to the Middle East due to rising tensions in Iran, Nissan will cut production by approximately 1,200 vehicles at its Kyushu plant in Japan this month.

Reports indicate that due to blocked vehicle shipments to the Middle East, Nissan will reduce production of non-Middle East models at its Kyushu plant in Fukuoka Prefecture to free up storage space.

Nikkei also noted that Nissan Shatai’s Kyushu plant will maintain normal production of the Nissan Patrol, Nissan’s core high-margin model for the Middle East market with strong demand.

However, due to restricted shipping routes, vehicles Nissan plans to send to the Middle East can only be temporarily stored in Japan.

The disruption mainly stems from escalating Iran-related conflicts and increased shipping risks in the Strait of Hormuz, a vital global shipping lane.

6. GCR and RIGK Launch Advanced Industrial Recycling Trials for Post-Consumer Packaging

GCR Sustainable Plastic Solutions and RIGK Limited have entered a strategic cooperation to conduct advanced industrial recycling trials for post-consumer packaging recovered under Germany’s PAMIRA system and the industry-specific GVÖ program.

The project aims to ensure high-level product quality, traceability, and safety for technical applications.

Overseas Macro Market:

Chemical Giant BASF Announces Price Hikes

Chemical giant BASF announced that starting March 18, prices for all home care, industrial & institutional cleaning, and industrial formulation products in Europe will increase, with hikes of up to 30% or more.

Israel Assassinates Iranian Intelligence Minister

According to Israeli media reports today citing an Israeli official, Israeli forces carried out an attack on Iranian Intelligence Minister Ismail Khatib on the night of March 17, with results pending.

UAE Foreign Ministry: National Operations Remain Generally Stable

The United Arab Emirates Ministry of Foreign Affairs issued a notice on March 18, providing an overview of the situation and response measures since Iran’s attacks on the UAE. It stated that the current national security situation is generally under control and social operations remain stable.

Iranian FM Says Assassination of Larijani Will Not Shake Iran’s Political Structure

Iranian Foreign Minister Araghchi said on March 18 that the assassination of Ali Larijani, Secretary of Iran’s Supreme National Security Council, will not deal a “fatal blow” to Iran’s leadership nor shake Iran’s political structure.

Japanese PM: No Plan to Dispatch SDF to Strait of Hormuz

Japanese Prime Minister Takako Iso said at the Upper House Budget Committee that there are currently no plans to dispatch the Self-Defense Forces to the Strait of Hormuz.

Iran Fires Missiles Carrying Cluster Warheads at Tel Aviv, Israel

According to Iranian sources, Iran launched missiles carrying cluster warheads at the Tel Aviv area in Israel in retaliation for the assassination of Ali Larijani.

Air raid sirens sounded in Jerusalem and many parts of Israel in the early hours of March 18. The Israel Defense Forces stated it detected incoming Iranian missiles. Smoke rose in many parts of Israel after the Iranian missile attack. Israel’s emergency service reported that the missile attack has killed 2 people and damaged multiple buildings.

Price Information:

CNY/USD Central Parity Rate Hits Highest Level Since April 25, 2023

The central parity rate of the RMB against the US dollar was 6.8909, up 52 points. The previous trading day’s central parity rate was 6.8961, the official closing price was 6.8877, and the overnight closing price was 6.8850.

Upstream Raw Material USD Market Prices (March 17)

CFR Northeast Asia: 1,250 USD/ton, up 50 USD/ton

CFR Southeast Asia: 1,250 USD/ton, up 50 USD/ton

FOB Korea Northeast Asia Propylene: 1,080 USD/ton, stable

CFR China Propylene: 1,090 USD/ton, down 20 USD/ton

North Asia Frozen Cargo CIF: Propane 916–926 USD/ton; Butane 916–926 USD/ton

South China Frozen Cargo CIF (Early April): Propane 966–976 USD/ton; Butane 961–971 USD/ton

Taiwan Frozen Cargo CIF: Propane 916–926 USD/ton; Butane 916–926 USD/ton

LLDPE USD Market Prices

Film Grade: 1,230 USD/ton (CFR Huangpu)

Injection Molding Grade: 1,450 USD/ton (CFR Dongguan)

HDPE USD Market Prices

Film Grade: 1,300 USD/ton (CFR Shekou)

Blow Molding Grade: 1,280 USD/ton (CFR Huangpu)

Injection Molding Grade: No Quotation

Pipe Grade: No Quotation

LDPE USD Market Prices

Film Grade: 1,450 USD/ton (CFR Dongguan)

Coating Grade: No Quotation

PP USD Market Prices

Homopolymer: 1,245 USD/ton (CFR Huangpu)

Copolymer: 1,275 USD/ton (CFR Huangpu)

Film Grade: No Quotation

Transparent Grade: 1,410 USD/ton (CFR Huangpu)

Pipe Grade: 1,480 USD/ton (CFR Shanghai)