China Lifts Additional Tariffs on Some Canadian Imports! Lotte Chemical to Shut Down 1.1M TPY Ethylene Plant

International News Highlights:

Raw Material News: 1.1 Million TPY Ethylene Plant to Be Shut Down

Additive News: Avantium Partners with Will & Co to Advance FDCA Applications in Coatings, Adhesives, Sealants and Elastomers

Equipment News: Brückner and BB Engineering Launch World’s First 360mm PET Single-Screw Extruder

Exhibition News: Nouryon to Showcase Bio-Based Composites for Aviation at JEC World 2026 in France

Macro News: MOFCOM Decides to Remove Anti-Discriminatory Additional Tariffs on Some Canadian Imports

Price Information: USD/CNY Central Parity Rate at 6.9228, Unchanged from Previous Day

International News Details:

1. 1.1 Million TPY Ethylene Plant to Be Shut Down

According to South Korean media, the South Korean government announced on February 25 that it will provide 2.1 trillion KRW (approx. 10 billion RMB) in financial and tax support for the restructuring project of Lotte Chemical and HD Hyundai Chemical at the Daesan Industrial Complex. This is the first approved restructuring project under South Korea’s large-scale petrochemical industry self-rescue plan.

Under the restructuring plan, Lotte Chemical will spin off its Daesan Plant in South Chungcheong Province and merge it with HD Hyundai Chemical to form a new entity. Both companies will inject 600 billion KRW each into the new company. Lotte Chemical’s naphtha cracker at Daesan, with an annual ethylene production capacity of 1.1 million tons, will be shut down. Other duplicate or loss-making facilities operated by the two companies will also be suspended.

The South Korean government will provide comprehensive support including financing, tax incentives and regulatory approvals, with the largest being a 2 trillion KRW financial support package. Financial institutions will provide 1 trillion KRW in new loans to support corporate restructuring. Additionally, up to 1 trillion KRW in existing loans will be converted into perpetual bonds.

2. Dual Global Firsts! Toray Achieves Breakthroughs in PA12 and PPS

In February, Japan’s Toray Industries unveiled two major new material achievements, achieving simultaneous breakthroughs in 3D printing and high-temperature flexible materials with “world-first” capabilities.

On February 24, Toray officially launched Toraypearl™ PA12, a truly spherical PA12 powder specifically designed for Powder Bed Fusion (PBF) 3D printing. Leveraging Toray’s proprietary polymer particle engineering technology, this material resolves industry pain points of conventional PA12 powders, delivering significant improvements in both surface quality and mechanical performance.

Prior to the spherical PA12 launch, Toray introduced another world-first high-performance flexible polyphenylene sulfide (PPS) resin in early February, achieving a perfect balance of flexibility, flame retardancy and high-temperature resistance. The core advantages of this new material focus on three dimensions, precisely meeting the stringent requirements of high-end manufacturing.

3. Australian State Government Funds Hard-to-Recycle Plastic Treatment Projects

The Australian federal government and the New South Wales (NSW) government have jointly allocated 11.2 million AUD to expand facilities for processing hard-to-recycle plastics, including soft plastics and rigid packaging materials. These projects will enhance recycling capacity in regional NSW, reduce landfill volumes and strengthen the domestic plastic recycling supply chain.

The new government funding will be used to expand hard-to-recycle plastic processing infrastructure in NSW, aiming to divert tens of thousands of tons of waste from landfills annually while supporting local manufacturing and employment. The joint funding for two regional projects is part of broader national and state recycling initiatives aimed at advancing the circular economy for plastics across Australia.

4. Arkema to Cut Around 1,800 Jobs

On February 26, Arkema released its latest financial results:

2025 sales: 9.068 billion EUR, down 5% YoY

EBITDA: 1.251 billion EUR, down 18.3% YoY

Adjusted net income: 328 million EUR, down 46.8% YoY

Net income: 62 million EUR, down 82.6% YoY

Arkema also announced it will continue to streamline and optimize its organizational structure, with employee numbers expected to decline by approximately 3% annually over the next three years. According to its annual report, Arkema’s total workforce fell to 20,648 at the end of 2025, a decrease of 434 from 2024. Based on the optimization plan, Arkema may cut around 1,800 jobs over the next three years.

5. Brückner and BB Engineering Launch World’s First 360mm PET Single-Screw Extruder

BB Engineering recently announced the successful commissioning of two single-screw extruders with a 360mm screw diameter—the world’s first of their kind for PET processing.

6. Envalior to highlight its bio-based composites for aircrafts at JEC World 2026

Envalior is putting the spotlight on its new Tepex® and UDea® composites for aircraft and drone manufacturing at JEC World 2026. The composites, many of which are bio-based, give manufacturers in these industries the opportunity to switch from thermoset to thermoplastic construction materials.

7. Avantium Partners with Will & Co to Advance FDCA Applications in Coatings, Adhesives, Sealants and Elastomers

Avantium, a leader in renewable and circular polymers, has recently partnered with specialty (bio-based) chemical distributor Will & Co B.V. to accelerate the adoption of furandicarboxylic acid (FDCA) in coatings, adhesives, sealants and elastomers (CASE).

FDCA is a versatile bio-based feedstock that enhances the performance of synthetic materials, including alkyd resins, surfactants and polyester polyols used in everyday applications such as paints, adhesives, flooring, roofing, piping, automotive parts and construction materials.

The partnership leverages Will & Co’s strong market presence and expertise in the CASE industry, as well as Avantium’s proprietary YXY® technology, to jointly produce and promote FDCA as a sustainable bio-based building block.

Overseas Macro Market:

India’s 2025 NEV Sales Up 17% to Over 2.4 Million Units

In 2025, India’s new energy vehicle (NEV) annual sales increased by 17% to over 2.4 million units. The market outlook remains positive for this year as more models are launched and federal and local policies continue to roll out. India is gradually expanding support for the NEV supply chain to enhance domestic manufacturing capabilities. Last year, public markets were a popular funding channel for NEV companies.

RMB Option Bets Heat Up; Traders Forecast 5% Gain by Year-End

Trading in RMB options betting on a stronger yuan has intensified, with traders positioning for the USD/CNY exchange rate to rise toward 6.50 by the end of the year. USD/CNY option volumes surged on Thursday to their highest level since at least November 2024, when Trump was re-elected U.S. president, with positions clearly biased toward RMB strength, including bets of around 5% appreciation.

According to Depository Trust & Clearing Corporation (DTCC) data, trading volumes for USD/CNY put options (betting on RMB appreciation) reached or exceeded $100 million, twice the volume of call options.

Top U.S. Middle East Commander Briefs Trump on Military Options Against Iran

On February 26 local time, General Bradley Cooper, Commander of U.S. Central Command, briefed President Trump on military options against Iran. The CENTCOM Commander is the highest-ranking U.S. military officer in the Middle East. This marks Cooper’s first briefing to Trump on the issue since the Iran crisis escalated last December.

PBOC Cuts Forex Risk Reserve Requirement for Forward FX Sales to 0%

To promote the development of the foreign exchange market and support enterprises in managing exchange rate risks, the People’s Bank of China (PBOC) announced that starting March 2, 2026, the foreign exchange risk reserve requirement ratio for forward foreign exchange sales business will be lowered from 20% to 0%.

Going forward, the PBOC will continue to guide financial institutions to optimize exchange rate hedging services for enterprises and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Price Information

USD/CNY Central Parity Rate: 6.9228, unchanged from previous day; previous official close: 6.8397; previous night session close: 6.8500.

Upstream Raw Material USD Market Prices

Ethylene: CFR Northeast Asia $695/ton (stable); CFR Southeast Asia $685/ton (stable)

Propylene: FOB South Korea $790/ton (stable); CFR China $835/ton (stable)

LPG (North Asia): Propane $597–599/ton; Butane $597–599/ton

LPG (South China, early March): Propane $616–626/ton; Butane $615–621/ton

LPG (Taiwan): Propane $597–599/ton; Butane $597–599/ton

LLDPE USD Market Prices

Film Grade: $820/ton (CFR Shanghai)

Injection Molding Grade: $925/ton (CFR Huangpu)

HDPE USD Market Prices

Film Grade: $910–920/ton (CFR Huangpu)

Blow Molding Grade: $858–1040/ton (CFR Huangpu)

Injection Molding Grade: No quotes

Pipe Grade: No quotes

LDPE USD Market Prices

Film Grade: $1060/ton (CFR Dongguan)

Coating Grade: No quotes

PP USD Market Prices

Homopolymer Grade: $840–900/ton (CFR Huangpu)

Copolymer Grade: $1020/ton (CFR Nansha)

Film Grade: $1020/ton (CFR Huangpu)

Transparent Grade: $1070–1120/ton (CFR Huangpu)

Pipe Grade: $1130/ton (CFR Shanghai)