【Overseas Highlights】Four Middle Eastern Countries Collectively Cut Oil Production! LANXESS Cancels the Sale of Envalior; BASF Launches Low-Carbon BDO Materials

International News Briefing:

Raw Materials News – Deal Cancelled! Advent International Withdraws Its Offer to Acquire Lanxess’ Stake in Joint Venture Envalior

Auto News - Volkswagen CEO: Volkswagen will launch an affordable electric mobility product with high-end technology in 2026.

Packaging News - Amcor Joins DCM to Launch Recyclable Fertilizer Packaging

Other News – PUMA Partners with Shensai New Materials to Develop Next-Generation Flagship Nitrogen-Infused Foam Running Shoe Technology NITRO™

Macro News: Saudi Arabia, UAE, Iraq, and Kuwait to collectively cut production by up to 6.7 million barrels per day.

Price Information - The central parity rate of the RMB against the US dollar is 6.8982, up 176 basis points.

The following is the detailed international news:

BASF expands dispersion capacity at its Durban site in South Africa

Special Plastics Vision, March 10, reported that BASF Group has expanded its dispersion capacity at its Durban site in South Africa, further enhancing its ability to supply high-quality dispersions to customers. The products are mainly used in architectural coatings, construction materials, and papermaking industries. This significant capacity expansion ensures supply stability and helps BASF more efficiently support its customers' development plans. The Durban site serves customers across East Africa, West Africa, and the entire South Africa, and is one of the six dispersion production sites of BASF in the Europe, Middle East, and Africa (EMEA) region. With production facilities spread across Europe, Africa, and the Middle East, BASF achieves the goal of being close to local customers, ensuring stable supply, and responding quickly to regional market demands.

Cancel transaction! Anhong Capital withdraws its offer to acquire its stake in Langer's joint venture Envalior.

Specialty chemicals company LANXESS has canceled the sale of its stake in the joint venture Envalior. In an official announcement on its website, LANXESS stated that Advent has withdrawn its offer to acquire LANXESS’s 40.94% stake in Envalior. Envalior is a global engineering materials company headquartered in Düsseldorf, Germany, employing approximately 4,000 people and generating annual revenue of around €4 billion (USD 4.65 billion). It is one of the world's largest suppliers of high-performance polymers. The transaction would have generated proceeds of approximately €1.2 billion (USD 1.39 billion) for LANXESS.

US Study Suggests: Recycled Plastic "Washing Water" May Pose Health Risks, Experts Call for Stricter Regulation

According to the latest research report released by the American Institute for the Promotion of Food and Nutritional Sciences at 8:00 AM (Eastern Time) on March 9th, the "wash water" used for cleaning raw materials in the production process of recycled plastics may contain a variety of harmful chemical substances, which requires the attention of the industry and regulatory agencies to ensure the safety and environmental sustainability of recycled plastic products. As the global problem of plastic pollution becomes increasingly serious, recycling is seen as an important solution to reduce the flow of plastic waste. The U.S. Environmental Protection Agency (EPA) has set a goal to increase the national plastic recycling rate to 50% by 2030, meaning that the current recycling capacity needs to be expanded by 8 to 10 times. However, the study points out that achieving this goal not only requires an increase in recycling volume but also needs to address the potential safety risks in the production process of recycled plastics.

4. Midland Industries Acquires ISM, Expanding Product Portfolio for Medical and Plastic Industrial Applications

A metal and plastic industrial piping, valve, and fitting distributor and manufacturer based in Kansas City, Missouri, has acquired an air, vacuum, and fluid circuit component distributor and assembler located in Englewood, Colorado. This transaction expands the acquirer's product portfolio and strengthens its market position in the original equipment manufacturer (OEM) channel. Gemspring Capital's portfolio company Midland Industries announced today the acquisition of Industrial Specialties Manufacturing LLC (ISM). The financial terms of the transaction were not disclosed.

5. BASF launches BDO, THF, PolyTHF, and NMP products with a lower carbon footprint

On March 9, the Intermediate Products division of BASF launched new product specifications with a reduced product carbon footprint (rPCF) for 1,4-butanediol (BDO), tetrahydrofuran (THF), polytetrahydrofuran (PolyTHF®), and N-methylpyrrolidone (NMP) produced at its integrated site in Ludwigshafen, Germany. These products can be supplied to global customers from this site and contribute to expanding the division's ongoing development of new rPCF product categories. The Ludwigshafen plant uses low-emission raw materials and utilities to achieve a lower carbon footprint. As a result, these rPCF products have a carbon footprint that is at least 10% lower compared to the corresponding standard products produced in Ludwigshafen.

6. PUMA partners with Shensai New Materials to develop the next-generation flagship nitrogen gas midsole running shoe technology NITRO™

Recently, global sportswear brand PUMA signed a strategic cooperation agreement with Suzhou Sens New Materials Co., Ltd. ("Sens New Materials"), under which the two parties will jointly develop the next generation of PUMA's industry-leading high-performance running shoe technology, NITRO™. According to the agreement, Sens New Materials and PUMA will co-establish a dedicated laboratory in Suzhou to conduct research, development, and testing of new materials. PUMA expects to officially launch the first co-developed product based on this collaboration in the coming seasons.

7. Amcor partners with DCM to launch recyclable fertilizer packaging

Recently, packaging company Amcor announced a collaboration with Belgian fertilizer company DCM to launch a recyclable single-material polyethylene fertilizer packaging for the European market. This innovative product replaces DCM's previously difficult-to-recycle multi-layer composite packaging. The new packaging contains 35% post-consumer recycled material, with sizes ranging from 650 grams to 7 kilograms. It provides a high-performance recyclable solution while strongly supporting DCM's sustainable development strategy. Lifecycle assessment data shows that using films with 35% recycled content can reduce the carbon footprint by 17%, helping brands achieve carbon reduction and circular economy goals.

8. Volkswagen CEO: Volkswagen will launch an economic electric mobility product with high-end technology in 2026.

On March 10, the CEO of Volkswagen Group stated that in 2026, Volkswagen will launch an affordable electric mobility product equipped with high-end technology. In the Chinese market, Volkswagen will initiate the largest product promotion campaign in the company's history. At the same time, it will set key milestone targets in the areas of batteries, software, and autonomous driving.

Overseas macro market:

Saudi Arabia, the UAE, Iraq, and Kuwait collectively cut production by up to 6.7 million barrels per day.

On March 10, Saudi Arabia, the UAE, Iraq, and Kuwait reportedly cut crude oil production by up to 6.7 million barrels per day. Saudi Arabia reduced its oil output by 2 to 2.5 million barrels per day, while Iraq cut its crude production by approximately 2.9 million barrels per day.

[US tariff refunds may start being issued from April, with only online refund channels available]

Following a ruling by the U.S. Court of International Trade ordering the federal government to refund tariffs imposed under the International Emergency Economic Powers Act (IEEPA), U.S. Customs and Border Protection (CBP) recently stated that due to existing procedural and staffing limitations, the refund process may not begin until the end of April. The scale of this refund effort is unprecedented: as of March 4, the total amount of these tariffs is approximately $166 billion, involving more than 330,000 importers.

Israeli Air Strike on Iranian Nuclear Laboratory

Israeli officials stated that in the early hours of today (March 10) local time, Israeli forces carried out an airstrike on Iran's capital, Tehran, targeting facilities including a nuclear laboratory.

[Some US THAAD missile defense systems in South Korea to be transferred to the Middle East]

On the 10th, reporters learned that part of the U.S. Forces Korea's THAAD missile defense system has been transferred to the Middle East. Earlier, according to South Korean sources on the 6th, as U.S. military strikes against Iran continue, the United States is preparing to redeploy some of its forces stationed in South Korea to the Middle East. The South Korean government believes the U.S. may formally request the redeployment of some U.S. Forces Korea personnel to the Middle East in the near term. Multiple government sources stated that U.S. Forces Korea is currently making relevant preparations.

Iran's envoy to China: Passage through the Strait of Hormuz will be regulated, but this does not mean the strait is closed.

On the 9th, Iran's Ambassador to China, Abdolreza Rahmati Fazli, stated at a press conference that if the security of the Strait of Hormuz and its surrounding areas cannot be guaranteed, Iran will impose controls on the passage through the strait, but he emphasized that this does not mean closing the strait. Ambassador Fazli stated that the cause of the regional insecurity is the United States and Israel, and if the world hopes to ensure the security of energy transport routes, the United States and Israel must first leave the region.

Price information:

The central parity rate of the Chinese yuan against the U.S. dollar was set at 6.8982, up by 176 pips, marking its highest level since April 25, 2023. The previous trading day's central parity rate was 6.9158, the official closing price was 6.9183, and the onshore spot rate closed at 6.9085 in the overnight session.

[Upstream raw material USD market price]

On March 9, CFR Northeast Asia ethylene was $1,000/ton, up $90/ton; CFR Southeast Asia was $980/ton, up $80/ton.

Northeast Asian propylene FOB Korea average price rose by $220/ton to $1,110/ton, while CFR China average price increased by $235/ton to $1,220/ton.

North Asia CFR prices: propane at USD 875–881/ton; butane at USD 875–881/ton.

China South China FOB price for April: Propane 930-940 USD/ton; Butane 925-935 USD/ton.

CIF price for refrigerated cargo in the Taiwan region: propane at USD 875–881 per metric ton; butane at USD 875–881 per metric ton.

[LLDPE USD Price Market]

Film: USD 1,160 per metric ton (CFR Xiamen)

Injection molding: USD 1,250 per metric ton (CFR Dongguan)

[HDPE US Dollar Market Price]

Film: No quotation available;

Hollow: No quotation;

Injection molding: No quotation available;

Pipes: No quotation;

[LDPE US Dollar Market Price]

Film: USD 1,350/ton (CFR Dongguan)

Coating: No quotation.

[PP USD Market Price]

Homopolymer: 1130 USD/ton (CFR Huangpu)

Copolymer: USD 1,200 per metric ton (CFR Huangpu).

Film material: No quotation available;

Transparent: USD 1,480 per metric ton (CFR Huangpu)

Pipe: 1500 USD/ton (CFR Shanghai)