【Overseas Highlights】U.S. 24 states jointly sue trump over tariffs; escalating trade war prompts huntsman and dow mdi price hikes

International News Digest:

Raw Materials News: Huntsman Imposes "War Surcharge" as Global MDI Prices Continue to Rise

Packaging News – Colgate-Palmolive Develops Innovative HDPE Bottle Technology

RecyClass Releases Design Guidelines for Plastic Recycling in Key Industries

Macroeconomic NewsMiddle East conflict disrupts global supply chains, Maersk suspends more container shipping services

Price informationThe central parity rate of the RMB against the US dollar was set at 6.9025, down by 18 basis points.

The following is the detail of international news.

24 U.S. states file lawsuit to block Trump's latest global tariff policy

A coalition of 24 U.S. states will file a lawsuit against the Trump administration on Thursday, marking the first legal challenge to its newly implemented 10% global tariff. The states argue that the president cannot bypass previous Supreme Court rulings by invoking new legal grounds, and the Supreme Court has already ruled that most of the tariffs previously imposed by Trump are invalid.

These Democratic-led states, such as New York, California, and Oregon, argue that the new tariffs announced by Trump on February 20, following the Supreme Court ruling, are also an illegal act.

The states that are preparing to file a lawsuit stated that these tariffs were imposed under Section 122 of the Trade Act of 1974, for a period of 150 days. However, the law was originally intended to address short-term currency emergencies, not the normal trade imbalances resulting from long-term trade deficits.

2. Huntsman Imposes "War Surcharge"; Global MDI Prices Continue to Rise

On March 5, Huntsman announced that due to the sharp deterioration of the geopolitical situation in the Middle East leading to a surge in European natural gas prices, the production cost of MDI has significantly increased. It has decided to add a natural gas surcharge of 200 euros per ton on all MDI products sold to the Europe, Africa, Middle East, and India (EMEI) regions.

This is not Huntsman’s first price adjustment this year. On February 17, Huntsman raised MDI prices by $260 per ton and polyether prices by $110 per ton in the U.S. market; earlier, on December 2, 2025, Huntsman had already increased MDI prices by €350 per ton in Europe, Africa, and the Middle East.

At the same time, Dow announced on March 5 an emergency price increase for MDI products in Europe and the IMEA region (India, Middle East, and Africa), with increases of 200 euros/ton and 300 dollars/ton respectively. Dow openly stated in the notice that the significant rise in energy, raw material, and logistics costs caused by the turmoil in the Middle East was the direct reason for this price adjustment.

3, Sudden Ban! Nexperia China Faces Batch Disabling by Dutch Headquarters

On March 6, Nexperia (China) Co., Ltd. (referred to as "Nexperia") issued a letter to customers stating that starting at 19:02 on March 3, 2026, the office accounts of all employees in the China region by Nexperia B.V. (Nexperia's headquarters in the Netherlands) were batch-disabled, causing the inability to normally access key office environments such as Office 365 and SAP systems, which had a significant impact on the operations of Nexperia China.

Facing the sudden system ban, ASE China immediately activated the emergency response, and made all-out efforts to ensure that production and operations were not significantly affected.

It is reported that the IT and business departments in the China region have jointly initiated an emergency plan, prioritizing the restoration of critical systems and production scheduling. Currently, Nexperia China states that most of its operations have been restored, ensuring basic production and operations, and is making every effort to minimize the potential impact on subsequent production and delivery.

4. European Chemical Industry Council (Cefic) — European chemical production to decline by 2.4% in 2025

According to the latest “Chemical Industry Trends Report” released by the European Chemical Industry Council (Cefic), European chemical production declined by 2.4% in 2025, 11% below the pre-crisis level of 2014–2019. In November, Cefic projected that European chemical production would decline by 2% in 2025. In 2024, European chemical industry production also fell by 2.4%.

By country, the Netherlands saw a production decline of 4.9%, Germany a decline of 3.3%, Poland and Italy both recorded declines of less than 3%, France and Belgium decreased by 2.9% and 1.3% respectively, and Spain experienced a slight increase of less than 1%.

Petroleum and chemical industry is the sector most severely impacted by the economic recession, with a production decline of over 10%; polymer production fell by 6.9%; basic inorganic chemicals declined by 2.7%. In 2025, apart from dyes and pigments, which saw a 7% decrease, the production of most specialized chemical sub-sectors fell by 2%.

5. RecyClass releases plastic recycling design guidelines for key industries

The European plastic circular economy certification platform RecyClass recently released a new universal recycling assessment protocol and for the first time launched a specific "recyclability design guidelines" for plastic components in the automotive and electrical and electronic equipment (EEE) industries.

The released documents cover multiple areas including vehicles, refrigerators and heat exchange equipment, as well as small appliances and information and communication technology (ICT) products. The guidelines aim to help manufacturers improve the recyclability of plastic components and prepare for upcoming EU regulatory requirements.

Shintech 3.4 Billion Expansion of Louisiana Factory in the United States, Strengthening PVC Supply Chain

Shintech Louisiana LLC announced an investment of $3.4 billion at its facility in Iberville Parish, Louisiana, USA. The project includes the construction of a second ethylene unit and a fourth caustic soda and vinyl chloride monomer (VCM) unit to increase the production capacity of polyvinyl chloride (PVC) raw materials.

The company stated that the project is expected to create 163 new direct jobs, with an average annual salary of $117,329—42% higher than the average wage level in Iberville Parish—while also retaining the existing 725 jobs. According to data from the Louisiana Economic Development, the project will also generate 655 indirect jobs. The agency supported this investment through fiscal incentive policies.

7. Fibrant has shut down its caprolactam production facility in Geleen, the Netherlands, which is affiliated with China’s Hengshen Group.

A spokesperson from Fibrant company revealed that the company has closed its caprolactam plant in Gorinchem, the Netherlands. This move will result in the shutdown of approximately 135,000 tons per year of caprolactam production capacity in Europe.

The factory produces caprolactam using the phenol process, and also produces ammonium sulfate as a by-product.

This shutdown is due to the ongoing economic difficulties faced by European caprolactam producers, who are under increasing pressure from rising costs of ammonia and energy.

These factors have significantly compressed operating margins, making it increasingly difficult for regional producers to remain competitive.

8, Colgate-Palmolive Develops Innovative HDPE Bottle Technology

Colgate-Palmolive, Polyplastics Co., Ltd., and PTI jointly launched an innovative HDPE bottle production process, reportedly reducing both bottle weight and production cycle time by 25%. This new technology adapts the injection stretch blow molding (ISBM) process commonly used for PET bottles to produce lightweight, heat-fillable HDPE containers.

Overseas Macro Market

Orban: If Ukraine does not resume oil transit, Hungary will suspend transit cargo to Ukraine. Hungarian Prime Minister Orban said on March 6 that if Ukraine does not resume the flow of crude oil through the "Friendship" oil pipeline across Ukrainian territory to Hungary, Hungary will suspend the transit of important goods to Ukraine through its territory. Orban said during an interview with the national radio that Hungary has already stopped the delivery of gasoline and diesel to Ukraine, and currently only maintains electricity exports. He emphasized that unless Ukraine approves the resumption of crude oil transportation through the "Friendship" pipeline, Hungary will take further restrictive measures. Orban said that Ukraine's suspension of crude oil transportation through the "Friendship" pipeline is not due to technical reasons, but rather political motives. He stated that before the crude oil transportation is resumed, Hungary will veto any EU financial aid plan for Ukraine.

[Iranian Strike on the Iraqi Kurdish Region] Today (March 6), it was learned from Iranian sources that the Islamic Revolutionary Guard Corps of Iran launched missile strikes against the Iraqi Kurdistan Region.

[IMF says if oil prices rise 10% and last for a year, global inflation will increase by 40 basis points] The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, stated that if energy prices rise by 10% and persist for a year, it would cause global inflation to increase by 40 basis points and economic growth to slow by 0.1%-0.2%. "The world economy has shown remarkable resilience. Despite multiple shocks, the growth rate still reached 3.3%," Georgieva said at the IMF's "Asia in 2050" event in Bangkok. He said during an interview. "But this resilience is being tested again."

Iran claims to have shot down a U.S. military MQ-9 drone and an Israeli “Hermes” drone.

A journalist on Thursday learned from Iranian sources that in a recent incident, Iran's air defense system accurately targeted and destroyed a U.S. MQ-9 "Reaper" drone flying over Lorestan Province in western Iran, and an Israeli "Hermes 900" drone near the capital Tehran. Both drones were destroyed. The United States and Israel have not responded so far.

[United Arab Emirates Considering Freezing Iranian Assets] According to U.S. sources on May 5, the United Arab Emirates (UAE) is considering freezing “billions of dollars” in Iranian assets held in the UAE, reportedly “potentially severing one of Iran’s most critical economic lifelines.” It is disclosed that the UAE “has long served as a financial hub for Iranian businesses and individuals seeking to circumvent Western sanctions.” If the UAE proceeds with this action, “its primary targets would be accounts linked to Iran’s Islamic Revolutionary Guard Corps (IRGC),” which “would significantly restrict Iran’s access to foreign exchange and its ability to engage in the global trade network.”

[Trump Says There Is “No Time Limit” on Military Action Against Iran] On March 4, U.S. President Trump stated in an interview that he has “no time limit” on how long military action against Iran will last. Trump said the United States’ primary objective is to ensure that Iran “cannot obtain nuclear weapons” and added that he also hopes Iran “no longer possesses ballistic missiles.” When asked whether the U.S. homeland could face retaliatory attacks, Trump replied that such a risk always exists and noted that “people will die” in war.

Houthi rebel leader Abdulmalik al-Houthi said late on Thursday that the group "fully supports" Iran and is ready to take action at any time if circumstances require. Abdulmalik said in a televised speech on the Al-Masirah TV station controlled by the Houthi rebels that countries such as Israel are making arbitrary violations, trying to expand the war indefinitely. "Our hands are always on the trigger," he said, indicating that the group would take action once the situation requires it.

Price Information:

The central parity of RMB to USD is set at 6.9025, down 18 basis points; the previous trading day's central parity was 6.9007, the official closing price at 16:30 on the previous trading day was 6.9003, and the overnight trading session closed at 6.9125.

[Upstream Raw Material USD Market Price]

March 5th, CFR Northeast Asia 850 USD/ton up 50 USD/ton, CFR Southeast Asia 820 USD/ton up 50 USD/ton.

Northeast Asia propylene FOB Korea average price increased by $10/ton to $860/ton, while CFR China average price rose by $50/ton to $940/ton.

North Asia frozen cargo CIF, propane 744-746 USD/ton; butane 744-746 USD/ton.

China South China refrigerated cargo April arrival price: propane USD 791–801 per metric ton; butane USD 786–796 per metric ton.

LLDPE USD Market Price

Film: 980 USD/ton (CFR Xiamen)

Injection molding: USD 1,170/ton (CFR Dongguan)

[HDPE USD market price]

Film: USD 1,050/ton (CFR Huangpu)

Hollow: No quotation;

Injection molding: No quotation.

Pipe: No quotation;

[LDPE dollar market price]

Film: USD 1,250/ton (CFR Dongguan);

Coating: No quotation.

[PP USD market price]