【Overseas Highlights】 F1 Racing Uses Eco-Friendly Technology! Lotte Closes Million-Ton Cracking Unit; McKinsey Layoffs

International News Summary:

Raw Material NewsCovestro and XRG clear the final hurdle in a milestone transaction.

Electronic NewsPegasus Materials is promoting a new type of bio-based material, targeting 3D printing in electronics and aerospace.

Additive NewsBASF's new high-performance dispersant production line officially launched in Nanjing, China.

Car NewsU.S. tariffs on South Korean automobiles and auto parts have been reduced to 15% starting from the 1st of this month.

Macro News- The Taiwan authorities plan to allocate an additional $40 billion in military spending, and the "American Institute in Taiwan" has expressed its welcome. The Ministry of Foreign Affairs responded.

Price Information- The central parity rate of the yuan against the US dollar is reported at 7.0796, up by 30 points.

The following is a detailed report on international news:

Covestro and XRG clear final hurdles for milestone transaction.

German chemical giant Covestro AG and Abu Dhabi's XRG have received final regulatory approval for their strategic partnership, securing permission from the German Federal Ministry for Economic Affairs and Energy. This decision has cleared the last hurdle under foreign investment regulations, paving the way for the transaction to be completed within days.

This collaboration, positioned to reshape the global chemical industry, will drive both parties to actively pursue innovation, circular production, and digital transformation.

Lotte Chemical plans to close its Daesan cracking facility in South Korea!

On November 25, multiple local media outlets in South Korea reported that Lotte Chemical Corporation will permanently close its 1.1 million tons per year naphtha cracking facility located in Daesan, South Korea, but the reports did not mention a specific closure date.

The decision was made following the announcement of a restructuring agreement between Lotte and HD Hyundai Chemical in June. HD Hyundai Chemical also operates a naphtha cracking facility in the same area, with an ethylene production capacity of 850,000 tons per year. The two companies had previously agreed to integrate and optimize their production facilities in the park.

The report states that this move is seen as a response to the oversupply of olefins and derivatives in the region and globally, caused by China's massive capacity expansion.

In addition, the South Korean government has promoted an industry restructuring plan reached by consensus among major domestic producers. The shutdown of the Daesan cracker is expected to accelerate the restructuring process of other major petrochemical hubs such as Yeosu and Ulsan. The plan aims to cut ethylene production capacity by a total of 2.7 to 3.7 million tons per year.

The new high-performance dispersant production line of BASF has officially started operations in Nanjing, China.

BASF's new high-performance dispersant production facility has officially commenced operations in the Nanjing Jiangbei New Area New Materials High-tech Park. This investment will utilize Controlled Free Radical Polymerization (CFRP) technology to manufacture advanced dispersants and achieve localized production. Coupled with the supply from the production site in Heerenveen, the Netherlands, this expansion will further enhance global capacity, making supply more reliable and flexible.

4. F1 cars use bio-based materials! Sesko wins international award.

Global advanced materials leader Syensqo has been awarded the "Green Tech Award" at the Race Tech World Motorsport Symposium for its bio-based MTM 49–3 epoxy prepreg. This product is developed using 30% bio-based monomers, achieving the same mechanical strength, 190°C glass transition temperature, and processing performance as traditional epoxy prepregs, while offering up to a 40% weight reduction compared to metal materials.

5. Pegasus Materials promotes new bio-based materials, targeting 3D printing in electronics and aerospace.

Dutch high-performance materials startup Pegasus Materials BV has announced the official launch of two new bio-based materials aimed at the electronic connectors and industrial 3D printing sectors. Simultaneously, the company announced the expansion of its seed round of financing, with new investor Ferment Venture Capital joining, and existing investors LIOF and Fibrant BV continuing their support. This round of financing will accelerate the commercialization process of the company's products.

Lubrizol and FOLAX sign a memorandum of understanding to jointly promote innovative sustainable coating materials.

Lubrizol Corporation and Zhejiang FLON New Materials Co., Ltd. (hereinafter referred to as "FLON New Materials") have officially signed a memorandum of understanding. The two parties will establish a strategic partnership focusing on innovative material fields such as bio-based coatings, degradable coatings, specialty printing coatings, and high-barrier flexible packaging coatings, and jointly develop sustainable innovative coating materials.

According to the memorandum, both parties will establish a joint working group to systematically promote the development and application of technologies such as next-generation biodegradable environmentally friendly coating resins, functional coating resins, and high-performance inkjet resins through regular information sharing and a joint R&D mechanism. This cooperation will leverage Lubrizol's R&D advantages in specialty chemicals and Fuhua New Materials' rich experience in coating composite materials manufacturing and market application, aiming to develop environmentally friendly material solutions that are repulpable and recyclable, providing customers with more competitive products.

The tariff on South Korean automobiles and auto parts has been reduced to 15% as of the 1st of this month.

According to CCTV News, on November 26 local time, South Korea's ruling party, the Democratic Party, submitted the "Korea-U.S. Strategic Investment Management Special Act" to the National Assembly. The act includes the establishment of a Korea-U.S. Strategic Investment Fund and the setting up of a Korea-U.S. Strategic Investment Corporation to manage the fund. Based on previous agreements between Korea and the United States, tariffs on Korean-made cars and auto parts have been reduced to 15% starting from the 1st of this month. Kim Byung-ki, the floor leader of the Democratic Party, submitted the bill to the National Assembly on the same day, which is also a follow-up measure to implement the Korea-U.S. "Strategic Investment Memorandum of Understanding" signed on the 14th of this month.

Overseas Macro Market:

[The Taiwan authorities plan to add 40 billion USD in military spending, and the "American Institute in Taiwan" expresses its welcome; the Foreign Ministry responds] According to Pengpai News, on November 26, Foreign Ministry spokesperson Mao Ning hosted a regular press conference. A reporter from AFP asked about comments made by the head of the American Institute in Taiwan's Taipei office, who expressed welcome for the Taiwan region's announcement of a 40 billion USD supplemental defense budget. Mao Ning emphasized that China's position against official and even military ties between the U.S. and Taiwan is consistent, and that the Taiwan Democratic Progressive Party's attempts to "reject reunification with force" and "seek independence with force" will not succeed.

McKinsey cuts about 200 technology positions.AIThe substitute "unstoppable momentum" consulting firm McKinsey has eliminated about 200 global technology positions in the past week, joining in.Artificial IntelligenceThe trend of automating part of the work through AI is being observed across various industries. According to informed sources, as the company intensifies its efforts to adopt AI technology, further layoffs in various functional departments are not ruled out in the next two years. They also mentioned that McKinsey is carefully evaluating which... Can be completed by AI.

[Citigroup Hires Former Nomura and Wells Fargo Traders to Strengthen Asia FX Business] Citigroup has hired seven professionals to help strengthen its foreign exchange business in Asia, including former traders from Nomura International and Wells Fargo. Nicky Lam, formerly of Nomura, has joined Citigroup’s G-10 currency options trading team. Jonathan Chua, who previously worked at Wells Fargo and NatWest Markets, has joined Citigroup's foreign exchange trading department as a Singapore dollar trader. According to Citigroup’s statement, the former global markets enterprise of HSBC... Manoj Goel has been appointed as the Head of Corporate FX Sales for the Indian Subcontinent. Cassalynne Lou has joined the Corporate FX Sales team in Singapore.

On November 25, local time, Russian presidential spokesperson Dmitry Peskov stated that the "28-point" new plan proposed by the United States to end the Ukraine crisis has substantial significance and could serve as a basis for negotiations. He noted that Russia does not exclude the possibility of engaging with the U.S. regarding the peace plan. On the same day, Russian Foreign Minister Sergey Lavrov remarked that Russia is not in a hurry to urge the U.S. to negotiate on the Ukraine issue, but hopes the U.S. will inform them of the results of its consultations with Ukraine and Europe. He also accused Europe of interfering with the peace process through "leaks." (CCTV News)

Price information:

The central parity rate of the RMB against the USD is reported at 7.0796, up 30 points; the previous trading day's central parity rate was 7.0826, the official closing price of the previous trading day was 7.0938, and the night session closed at 7.0845.

[Upstream Raw Material USD Market Prices]

CFR Northeast Asia 730 USD/ton, CFR Southeast Asia 720 USD/ton.

The average FOB price of propylene in Northeast Asia is $695 per ton, and the average CFR price in China is $735 per ton.

The CFR price for refrigerated cargoes in North Asia is $518-520/ton for propane and $546-556/ton for butane.

The CIF price of frozen cargoes in South China in December is $561-571/ton for propane and $546-556/ton for butane.

The CIF price of frozen goods in Taiwan is 518-520 USD/ton for propane and 539-541 USD/ton for butane.

LLDPE USD market price

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

Injection molding: $935 per ton (CFR Huangpu);

[HDPE USD Market Price]

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

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

Hollow: 830 USD/ton (CFR Huangpu);

Pipe material: USD 1000/ton (CFR Huangpu).

[LDPE USD Market Price]

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

Coating: 1190 USD/ton (CFR Huangpu).

[PP USD Market Price]

Injection molding: $800/ton (CFR Huangpu);

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

Membrane material: USD 990/ton (CFR Huangpu).

Transparent: $1,065/ton (CFR Huangpu);

Pipe material: $1100/ton (CFR Shanghai).