Sumitomo Chemical Makes Major Acquisition! Solexel Launches U.S. Diaphragm Base Operations; Plastic Recycling Plant Catches Fire in Japan

International News Guide

Raw Material News - Sumitomo Chemical Makes Major Acquisition!

Automotive News - OPmobility Partners with Yanfeng Group to Deepen Business Layout of JV in China

Packaging News - Impacting Global Plastic Industry Chain! EU PPWR Supporting CEN Standard Officially Establishes Evaluation Framework

Electronics News - Dutch Startup Secures Funding, Bio-Based Products Target Electronics and Aerospace 3D Printing

Macroeconomic News - Cancellations of Scheduled Flights Between China and Japan Up ~56% MoM

Price Information - Ethylene Asia: CFR Northeast Asia USD 730/ton; CFR Southeast Asia USD 720/ton

Details of International News

1.Olin and Braskem Join Hands to Boost EDC Production

According to Plastmatch, Olin Corp. and Brazil-based Braskem Group recently announced a cooperation to expand ethylene dichloride (EDC) production capacity for Brazil’s polyvinyl chloride (PVC) market.

The two parties have signed a long-term agreement under which Olin will supply EDC, aligning closely with Braskem’s transformation plan for its chlor-alkali and vinyl assets in Brazil. Olin is a global leading chlor-alkali producer, while Braskem is one of the largest petrochemical enterprises in the Americas and a leading PVC producer in South America.

The two companies stated that the agreement marks a key progress in Olin’s global vinyl product strategy, establishing a sustainable cooperation framework that enables Olin to strategically leverage its cost competitive advantage in EDC in the fast-growing Brazilian PVC market.

2.EU Industry Chief: Raw Material Recycling May Be Key to Reducing Dependence on China

Reuters reported that Stéphane Séjourné, a key EU industry official, clearly stated on Wednesday that recycling is likely to be an effective solution for the EU to reduce its reliance on imports of critical raw materials from China.

The Critical Raw Materials Act, which officially took effect last year, sets clear recycling targets for the EU, aiming to meet 25% of the bloc’s demand for critical minerals through recycling by 2030. However, the EU’s current performance in rare earth recycling is far from satisfactory, with recycled rare earths accounting for less than 1% of total demand.

This gap between current status and set targets highlights the enormous challenges and room for improvement facing the EU in critical raw material recycling.

3.Ducor Petrochemicals Partners with Blue Circle to Lay Out Bio-Based and Carbon-Recycled Polypropylene

On November 24, Ducor Petrochemicals (Ducor Petrochemicals) and Blue Circle Olefins officially signed a cooperation agreement to jointly produce and market segregated bio-polypropylene and carbon recycled polypropylene.

The agreement marks the official launch of a unique cooperation between the two parties based on complementary technological advantages and production capacity, aiming to meet the growing demand for bio-based and carbon-recycled polypropylene in high-end niche markets such as healthcare, life sciences, automotive parts, electrical equipment, packaging materials, engineering products, and household goods.

4.DIN EN 18065: Building a Standardized Data System for Plastic Recyclates in Europe

According to Plastmatch on November 12, DIN EN 18065 has established for the first time a unified European recycling system for recording standardized data related to the origin, material properties, and recycling processes of plastic recyclates.

The standard aims to enhance transparency and traceability across the entire value chain, thereby creating conditions for the wider application of recycled materials. This will not only promote related trade but also drive investment and lay the foundation for subsequent international standardization processes.

5.OPmobility Partners with Yanfeng Group to Deepen Business Layout of JV in China

Recently, OPmobility Group, a global leading automotive component supplier, and SAIC-owned Yanfeng Group have deepened the strategic cooperation of their China joint venture Yanfeng Faurecia by expanding the business scope.

As a leading Chinese supplier of automotive exterior parts (bumpers, tailgates), Yanfeng Faurecia will be incorporated into the module assembly business of both parties, with additional exterior lighting and software solutions added. Through this business integration, Yanfeng Faurecia will expand its product portfolio and build a differentiated product matrix covering body exterior systems, exterior light-emitting components, modules and software, driving the continuous development of the enterprise.

6.Fire Breaks Out at Plastic Recycling Plant in Japan

A fire broke out at a waste plastic recycling and reprocessing plant in Ibaraki Prefecture, Japan, at around 11 PM local time on the 23rd, and the fire remained uncontrollable as of the morning of the 24th.

Reports stated that a solar power plant is located near the fire site. In addition, a school is situated about 400 meters away from the fire. Firefighters dispatched 10 fire engines to try to put out the fire, but there is no sign of the fire being brought under control yet.

Furthermore, local disaster prevention organizations have urged residents to stay away from the fire scene as much as possible and wear masks when going out, as plastic combustion may produce various harmful substances.

7.Sumitomo Chemical Makes Major Acquisition!

Recently, Sumitomo Chemical has reached a definitive agreement with Advanced Ultra Electronics Chemicals Co., Ltd. (AUECC), a Taiwanese semiconductor process chemical company, to acquire 100% of its shares.

Founded in 1998, AUECC provides high-quality, high-purity chemicals for cleaning and etching applications in the semiconductor, FPD, PV and LED industries. The company once held control of Advanced Ultra New Materials (Suzhou) Co., Ltd., one of the very few domestic enterprises mastering SEMIG5-grade ultra-high purity wet electronic chemical technology.

Through the acquisition of AUECC, Sumitomo Chemical will strengthen its global layout, establish its first semiconductor process chemical production base in Taiwan, and a second production base in the United States (alongside the existing Texas plant), targeting to double its sales in fiscal year 2030 compared with fiscal year 2024.

8.Braskem: Producing Next-Generation Plastics Using "Air"!

Recently, Brazil’s Braskem has entered into a strategic cooperation with Norsk e-Fuel, a Norwegian e-fuel company, focusing on the application of e-naphtha in plastic production to jointly develop next-generation low-carbon polypropylene and drive the decarbonization transformation of the plastic industry.

The key raw material for this cooperation is e-naphtha, derived from Norsk e-Fuel’s Power-to-Liquid (PtL) technology — synthesized from renewable electricity, water and captured carbon dioxide, rather than traditional fossil products.

Norsk e-Fuel is advancing the industrialization of PtL technology, planning to build three industrial plants by 2032 with an annual production capacity of over 200,000 tons of e-fuels, about a quarter of which will be supplied to the market as e-naphtha, providing stable raw material support for low-carbon polypropylene production.

9.Dutch Startup Secures Funding, Bio-Based Products Target Electronics and Aerospace 3D Printing

Pegasus Materials BV, a Dutch high-performance materials startup, announced the official launch of two new bio-based materials targeting electronic connectors and industrial 3D printing respectively.

At the same time, the company announced the completion of an extended seed round of financing, with new investor Ferment (a venture capital firm) joining, and existing investors LIOF and Fibrant BV also continuing to invest. This round of financing will accelerate the commercialization process of the company’s products.

10.Total Investment of HK$632 Million! Solexel Launches Operations of U.S. Diaphragm Base

Solexel (300568) announced that its lithium battery separator manufacturing base in North Carolina, the United States, has officially started operations.

Leveraging the company’s technological accumulation and industrial experience in the lithium battery separator field, the North American base will further strengthen local supply capacity and provide key material support for the development of the new energy industry in the region.

Solexel stated that as a key layout for the company to deepen its presence in the new energy sector, the completion and operation of the North American base accurately aligns with the continuously growing market demand for high-performance lithium battery separators from core industries such as energy storage (ESS) and electric vehicles (EV) in the local market.

Overseas Macroeconomic Market

【MOFA Responds to Japan's Plan to Deploy Offensive Weapons on Southwest Islands Adjacent to China's Taiwan: This Development Is Extremely Dangerous and Requires High Vigilance】

In response to a question about Japan’s plan to deploy offensive weapons on the Southwest Islands adjacent to China’s Taiwan, Foreign Ministry Spokesperson Mao Ning stated at a regular press conference on the 24th that this move deliberately creates regional tensions and provokes military confrontation.

Coupled with Japanese Prime Minister Sanae Takaichi’s wrong remarks on Taiwan, this development is extremely dangerous and requires high vigilance from neighboring countries and the international community.

China will never allow Japanese right-wing forces to reverse historical trends, never allow external forces to meddle in China’s Taiwan region, and never allow Japanese militarism to revive. China has the resolve and ability to safeguard national territorial sovereignty.

【Cancellations of Scheduled Flights Between China and Japan Up ~56% MoM】

According to TravelDaily China, as of now, the number of cancellations of scheduled flights from China to Japan from November 24 to December 31 has increased by approximately 56% compared with the same period last month.

After Air China, China Eastern Airlines and China Southern Airlines announced special policies for tickets on Japan routes on November 15, the number of ticket bookings for Japan routes by domestic airlines has shown a downward trend.

As of now, the number of ticket bookings for flights from China to Japan by domestic airlines (excluding 9 Air and Spring Airlines) for the next 60 days has decreased by about 29% compared with the bookings for the next 60 days as of November 15.

【Barclays Expects Bank of Korea to Cut Rates This Week】

Barclays expects the Bank of Korea’s Monetary Policy Committee to cut interest rates by 25 basis points at its meeting on November 27, as tight financial conditions and rising default risks are weighing on economic growth.

Bumki Son, an economist at the bank, wrote in a report that it would be prudent to cut rates in November to support domestic demand, reduce risks from rising default rates, facilitate a soft landing for industries in need of restructuring, and curb expectations for more aggressive monetary easing by tightening the mortgage environment.

Barclays expects the tone of forward guidance and monetary policy statements over the next three months to be neutral. The Bank of Korea is expected to raise its 2025 and 2026 GDP growth forecasts to 1.0% and 1.8% respectively, up from the previous 0.9% and 1.6%.

【Canada Says It Will Resume Trade Talks with U.S. "At the Appropriate Time"】

According to Reuters, Canadian Prime Minister Mark Carney stated on Sunday that Canada will resume trade talks with the United States "at the appropriate time", noting that he currently has no urgent issues to resolve with U.S. President Donald Trump.

Carney told reporters on the sidelines of the G20 leaders’ meeting in Johannesburg: "We are focused on Canada’s future development and new partnerships. We may hold talks with the U.S. President within the next two weeks. We will re-engage in dialogue when the time is right." Carney reiterated his willingness to conduct dialogue.

【BHP Billiton Rises 1.3% as It Abandons Merger Plan with Anglo American】

Reports stated that BHP Billiton has abandoned its latest acquisition proposal for Anglo American, ending an unexpected and short-lived attempt by the world’s largest mining company to block the merger of its smaller rival with Canada’s Teck Resources Limited.

BHP Billiton confirmed on Monday that it had held preliminary discussions with Anglo American but said it is "no longer considering a merger of the two companies" and will focus on its existing business portfolio.

Price Information

The CNY/USD central parity rate was reported at 7.0847, an increase of 28 pips; the central parity rate of the previous trading day was 7.0875, the official closing price of the previous trading day was 7.1103, and the night session closing price of the previous day was 7.1050.

【Upstream Raw Material USD Market Prices】

Ethylene Asia: CFR Northeast Asia USD 730/ton; CFR Southeast Asia USD 720/ton.

Propylene Northeast Asia: FOB South Korea average USD 695/ton; CFR China average USD 735/ton.

North Asia refrigerated cargo CIF price: Propane USD 509-511/ton; Butane USD 530-532/ton.

South China (China) refrigerated cargo CIF price for early December: Propane USD 558-568/ton; Butane USD 543-553/ton.

Taiwan region refrigerated cargo CIF price: Propane USD 509-511/ton; Butane USD 530-532/ton.

【LLDPE USD Market Prices】

Film: USD 835-855/ton (CFR Huangpu);

Injection Molding: USD 935/ton (CFR Huangpu).

【HDPE USD Market Prices】

Film: USD 880-900/ton (CFR Huangpu);

Injection Molding: USD 815-820/ton (CFR Huangpu);

Blow Molding (Hollow): USD 830/ton (CFR Huangpu);

Pipes: USD 1000/ton (CFR Huangpu).

【LDPE USD Market Prices】

Film: USD 990-1000/ton (CFR Huangpu);

Coating: USD 1190/ton (CFR Huangpu).

【PP USD Market Prices】

Injection Molding: USD 800/ton (CFR Huangpu);

Copolymer: USD 820-860/ton (CFR Nansha);

Film Grade: USD 990/ton (CFR Huangpu);

Transparent Grade: USD 1065/ton (CFR Huangpu);

Pipes: USD 1100/ton (CFR Shanghai).