【Overseas Highlights】Hainan's New Zero-Tariff Policy Implemented! Mitsui Chemicals' Profit Plummets 40%, Lanxess Raises Global Adipic Acid Prices

International News Briefs:

Raw Material News

Automotive News: Japan's January Imported Car Sales Drop 12% Year-on-Year, Battery Electric Vehicles Increase 68%

Packaging News - EU's Breakthrough Testing Technology Emerges, Pseudo-Eco-Friendly Tableware to Be Excluded

Electronic News - Avient Launches New Product Line, Expanding Portfolio of Halogen-Free Flame Retardant Thermoplastic Elastomers (TPEs)

Medical News - Double Breakthrough in Sustainable Pharmaceutical Packaging Technology with Biomass PE and rPET!

Macro News The Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued the "Notice on the 'Zero Tariff' Policy for Inward Goods Consumed by Island Residents in Hainan Free Trade Port".

Price Information The central parity rate of RMB against US dollar was reported at 6.9570, down by 37 basis points.

Here are the international news details:

1. Hit by Double Pressure of Sales Prices and Raw Material Costs, Mitsui Chemicals' Profits Plunge 40%

Mitsui Chemicals, Inc. announced a 40% year-on-year decline in profit for the first nine months of fiscal year 2025, ending December 31, 2025, with net profit falling to JPY 22.6 billion (approximately USD 144.3 million). Consolidated sales revenue decreased by 9.0% year-on-year to JPY 1.2 trillion, primarily due to lower product prices driven by reduced raw material costs such as naphtha, and a decrease in sales volume. The decline was particularly significant in the Basic Materials and Green Materials segments. Operating profit for the period was JPY 68.0 billion, down 10.3% year-on-year, mainly due to the deterioration in inventory revaluation gains and losses caused by falling naphtha prices.

The Basic & Green Materials segment saw a decrease in revenue of 86.3 billion yen to 442.5 billion yen, accounting for 36% of total sales. The segment's operating loss widened from 7.2 billion yen in the same period of the previous year to 12.8 billion yen. Although business restructuring optimized fixed costs, the loss still expanded further due to declining raw material prices and a weaker market environment. Sales of phenolic products within the segment decreased, while price adjustments for polyolefin products somewhat improved trading conditions. The naphtha cracker operating rate remained low due to shrinking downstream demand and planned maintenance shutdowns.

BASF and Changshuo New Material Partner to Localize Infinergy® E-TPU Production

To actively promote the research and development and application expansion of Infinergy® E-TPU foam materials in the Chinese market, BASF recently signed a Memorandum of Understanding (MoU) with Jiangsu Changshuo New Material (hereinafter referred to as "Changshuo"), a leading foam material expert in China.

According to the agreement, BASF will be Changshuo's exclusive supplier of TPU materials, and the two parties will jointly develop customizable Infinergy® E-TPU foam solutions to meet the diverse needs of customers in the Chinese market.

The cooperation between the two parties will focus on improving material performance by utilizing supercritical fluid physical foaming technology without chemical foaming agents. This will lead to superior rebound, cushioning, and durability, while also reducing waste in the production process. Concurrently, both parties will engage in innovative research and development concerning material color, size, and shape, aiming to offer products with greater design freedom to meet the diverse aesthetic and functional demands of the domestic market.

Lanxess increases adipic acid prices globally due to rising costs.

Specialty chemicals company LANXESS has announced a price increase for adipic acid. The price adjustment amounts to an average of 100 euros per metric ton and is applicable worldwide.

This price adjustment reflects sustained accumulated cost pressures, particularly significant increases in raw material costs.

Lanxess stated that although the company has made every effort to control rising costs and maintain price stability, this price adjustment is still a necessary measure to ensure the long-term stability and sustainability of supply.

4. Avient Launches New Product Line, Expanding Halogen-Free Flame Retardant Thermoplastic Elastomer (TPE) Portfolio

Avient Corporation, a global innovator in material solutions, announced the expansion of its OnFlex™ NHFR halogen-free flame retardant thermoplastic elastomer (TPE) portfolio with the introduction of the OnFlex™ NHFR 7001 Series.

Compared to Avient's previous generation OnFlex™ halogen-free materials, this new series offers improved flame retardancy for plastic products while also providing customers with better mechanical properties and cost-effectiveness.

OnFlex™ NHFR 7001 series meets increasingly stringent regulatory requirements and the growing market demand for halogen-free flame retardant materials. The series is specifically developed to assist manufacturers in complying with the European Chemicals Agency (ECHA) guidance on flame retardants, meets the UL 94 V-0 flammability rating standard, and complies with REACH regulations and RoHS directives.

Lubrizol Launches Tolerathane™ Thermoplastic Polyurethane (TPU), Reshaping Innovation Opportunities for Implantable Medical Devices

Lubrizol, a global leader in specialty chemicals, has officially launched Tolerathane™ thermoplastic polyurethane (TPU), a new medical-grade material. This material is specifically developed to meet the evolving application needs of implantable medical devices. Compared to other materials, Tolerathane™ TPU exhibits exceptional tolerance in harsh biological environments while maintaining excellent softness and mechanical toughness, and seamlessly adapting to standard thermoplastic processing techniques.

6. Biomass PE and rPET adopted! Chugai Pharmaceutical achieves dual breakthroughs in sustainable packaging technology

The sustainable upgrade of pharmaceutical packaging continues to advance, even achieving breakthroughs in challenging formats like blister packaging. A prime example of this trend is the packaging for Chugai Pharmaceutical Co., Ltd.'s anticancer drug, which won the WorldStar Award in the Pharmaceutical category for 2026.

This Japanese company states that this sustainable and user-friendly packaging provides precise unit doses tailored to the needs of both healthcare professionals and patients, while demonstrating the company's commitment to environmental responsibility.

While ensuring drug stability, this packaging solution comprehensively enhances the convenience of anti-cancer medications for cancer patients of all ages and types. Compared to traditional bottle packaging, this design adopts fixed-dose blister packs, which not only optimizes clinical diagnosis and treatment workflows but also improves the patient medication experience.

7、欧盟突破性检测技术问世，伪环保餐具将被拒之门外

Recently, the University of Pisa in Italy developed an innovative method to detect and quantify PE/PP materials in molded pulp tableware, preventing the malicious addition of non-biodegradable substances during the production of imported packaging. Professor Erika Ribechini from the university explained: "This analytical method enables efficient and reliable testing of complex samples, with short detection times and controllable costs."

This measurement method, once introduced, may have a significant impact on the export of environmentally friendly tableware to the EU.

The new EU "Certification Scheme for Compostable Industrial Products," officially implemented on January 1, 2026, strictly limits the addition of non-degradable polyethylene to 1%. However, a lack of effective testing methods to verify companies' compliance with this limit has persisted. The new testing tool developed by the University of Pisa has successfully filled this technological gap.

Henkel Announces Acquisition of Stahl, Strengthening Alliance to Explore New Future in Specialty Coatings

Stahl, a leading company in specialty coatings for flexible materials, and its shareholders Wendel (68.5% stake), BASF (16.1% stake), and Clariant (14.6% stake), have announced an agreement to be acquired by Henkel for an enterprise value of €2.1 billion. Following the completion of the transaction, Wendel will end its two-decade-long controlling stake in Stahl, and Henkel will officially take over, marking the beginning of a new chapter of synergistic development for both parties.

Japan's January imported car sales decreased by 12% year-on-year, while EV sales increased by 68%.

Data released by the Japan Automobile Importers Association (JAIA) on February 5 showed that Japan's imported car sales (excluding Japanese brands) in January decreased by 12% year-on-year to 13,019 units. In contrast, sales of battery electric vehicles (BEVs) grew by 68% to 2,041 units, returning to growth after a one-month hiatus. Mercedes-Benz saw a 13% decline but remained in the top spot with 3,031 units; Volkswagen sales fell 41% to 1,528 units; and BMW sales dropped 17% to 1,383 units. Meanwhile, BYD's sales surged 3.4 times to reach 180 units.

Overseas Macro Market

Russian Foreign Minister Sergey Lavrov said in an interview with RT on the 5th that the current deterioration of relations between the United States and Iran has a "potentially explosive" impact on the entire Middle East region.

【俄总统特别代表：乌克兰和平协议谈判正取得进展】 据塔斯社5日报道，俄罗斯总统特别代表德米特里耶夫当天表示，尽管受到干扰，但乌克兰和平协议谈判正在取得进展。

[Iran-U.S. Talks Imminent, Iran Says: Nuclear Issue Only] Iranian Foreign Minister Araghchi said on social media on the evening of the 4th that Iran is scheduled to hold nuclear talks with the United States in Muscat, the capital of Oman, on the 6th. According to Reuters, the main disagreement between the two sides at present is that Iran insists that the scope of the negotiations be limited to the nuclear issue, but U.S. Secretary of State Rubio said that the negotiations must also include Iran's ballistic missile program.

The Israeli Security Cabinet is scheduled to hold a meeting on the 5th. 】

Against the backdrop of the impending resumption of talks between the United States and Iran, Israel's security cabinet is scheduled to convene on the 5th. Reportedly, the participating ministers were not informed of the meeting's agenda beforehand. On the 3rd, Israeli Prime Minister Netanyahu met with U.S. Presidential Envoy Brett McGurk in Jerusalem. Israel has requested "freedom of action" from the U.S. on the Iran issue.

Greenland Sets New January Temperature Record, Climate Change Reshaping Its Economy. According to Reuters on the 4th, Greenland, a territory coveted by Trump, has just experienced the warmest January on record. Greenland's warming rate far exceeds the global average, profoundly reshaping the development prospects of its fisheries, mining, and other sectors.

[The Ministry of Finance and Two Other Departments Issued the "Notice on the 'Zero Tariff' Policy for Inbound Goods Consumed by Residents on Hainan Free Trade Port Island"] The notice states that inbound goods purchased by residents on Hainan Free Trade Port Island at designated operating locations, within the scope of the duty-free allowance and product list, will be exempt from import tariffs, import-related value-added tax, and domestic consumption tax. The "zero tariff" inbound goods are subject to positive list management, with the specific scope detailed in the (attachment). Island residents, with their valid ID card, residence permit, social security card, or residency document, can purchase inbound goods on the list an unlimited number of times at designated operating locations and pick up the goods on-site. The cumulative annual duty-free purchase amount per person shall not exceed 10,000 RMB.

Pricing Information

The yuan's mid-point exchange rate against the US dollar is 6.9570, down 37 basis points. The mid-point on the previous trading day was 6.9533, the official closing price at 16:30 on the previous trading day was 6.9376, and the night session closed at 6.9450.

Upstream raw material USD market price

CFR Northeast Asia ethylene down $5/ton to $695/ton, CFR Southeast Asia stable at $680/ton.

The average price of propylene in Northeast Asia remained stable, with FOB Korea at $790/mt and CFR China at $835/mt.

CFR North Asia, propane at $568-570/mt; butane at $588-590/mt.

March landed prices to China South for frozen cargo: Propane USD 599-609/tonne; Butane USD 594-604/tonne.

Taiwan region, frozen cargo landed price: Propane $568-570/ton; Butane $588-590/ton.

[LLDPE US Dollar Market Price]

Film: US$830/ton (CFR Xiamen)

Injection Molding Grade: $910/MT (CFR Xiamen)

HDPE USD Market Price

Film: $910/ton (CFR Huangpu)

Injection molding: 800 USD/ton (CFR Huangpu)

Hollow: 850 USD/ton (CFR Huangpu)

Pipes: USD 1000/ton (CFR Huangpu)

LDPE US dollar market price

薄膜：1035美元/吨（CFR黄埔）；

Coating: USD 1,240/MT (CFR Huangpu).

PP USD Market Price

Injection Molding: $830/ton (CFR Dongguan)

Copolymer: 890 USD/ton (CFR Nansha)

Film material: 980 USD/MT (CFR Huangpu)

Transparent: USD 1,075/MT (CFR Huangpu);

Pipes: $1130/ton (CFR Shanghai)