【Overseas News】China Removes Tariff on Some Canadian Goods; Lotte Chemical Closes 110 Million Ton Per Year Ethylene Plant

International News Digest

1100,000 tons per year ethylene plant will be shut down!

Additives News – Avantium and Will & Co Join Forces to Advance FDCA Applications in Coatings, Adhesives, Sealants, and Elastomers

Equipment News - Brückner partners with BB Engineering to launch the world's first 360mm PET single-screw extruder

Exhibit Highlights: Evonik to Showcase Bio-Based Composites for Aerospace at JEC World 2026 in France

Macroeconomic NewsThe Ministry of Commerce has decided to cancel the additional tariffs on certain Canadian imported goods as a non-discriminatory measure.

Price informationThe central parity rate of the RMB against the US dollar was set at 6.9228, unchanged from the previous day.

The following is the details of international news.

11 million tons per year ethylene plant will be shut down!

According to Korean media reports, on February 25, the South Korean government announced a 2.1 trillion won (approximately 10 billion RMB) fiscal and tax support package for the restructuring projects of Lotte Chemical and HD Hyundai Chemical in the Daesan Industrial Complex. This is the first approved restructuring project in the large-scale self-rescue plan of South Korea's petrochemical industry.

Under the restructuring plan, Lotte Chemical will spin off its Daecheon Plant in Chungcheongnam-do, South Korea, and merge it with HD Hyundai Chemical to form a new entity, with both companies contributing 600 billion Korean won each to the new company.

LG Chem’s naphtha cracker facility located in Daesan will be shut down, with an ethylene production capacity of 1.1 million tons per year. Other facilities operated by the two companies that involve redundant construction or are operating at a loss will also be suspended.

The South Korean government will provide comprehensive support measures, including financing, tax incentives, and regulatory approvals, with the largest component being a 2 trillion KRW financial support program. Financial institutions will offer 1 trillion KRW in new loans to support corporate restructuring. Additionally, up to 1 trillion KRW of existing loans will be converted into perpetual bonds.

Dual Launch! TONEN PA12 + PPS Double Breakthrough!

In February, Toray Industries, Inc. of Japan announced two major initiatives in quick succession.New materialsThe achievement, with the "world's first" hard power, has simultaneously realized breakthroughs in the 3D printing and high-temperature flexible materials fields.

Toray officially launched Toraypearl™ Polyamide (PA) 12 on February 24—a truly spherical PA12 powder specifically engineered for powder bed fusion (PBF) 3D printing. Leveraging Toray's proprietary polymer particle engineering technology, this material addresses longstanding industry challenges associated with conventional PA12 powders, delivering significant improvements in both surface quality and mechanical properties.

Before the introduction of spherical PA12, Toray had already launched another world's first high-performance flexible polyphenylene sulfide (PPS) resin in early February, achieving a perfect balance of flexibility, flame retardancy, and heat resistance. The core advantages of this new material are concentrated in three dimensions, precisely meeting the stringent demands of high-end manufacturing.

3. Australian state government funds hard-to-recycle plastic processing project

The federal government and the New South Wales (NSW) government have jointly funded $11.2 million to expand facilities that process hard-to-recycle plastics, including soft plastics and rigid packaging materials.

These projects will enhance recycling processing capacity in the New South Wales region, reduce landfill waste, and strengthen the domestic plastic recycling supply chain.

New government funding will be used to expand infrastructure for processing hard-to-recycle plastics in New South Wales, aiming to divert tens of thousands of tonnes of waste from landfill annually while supporting local manufacturing and employment.

The Australian federal government and the New South Wales state government have jointly allocated AUD 11.2 million to two regional projects, which are part of broader national and state-level recycling initiatives aimed at advancing a circular economy for plastics across the country.

4. Arkema plans to cut 1,800 jobs!

On February 26, Arkema announced its latest financial results, with the overall situation as follows:

2025 sales were 9.068 billion euros, a 5% decrease year-on-year; EBITDA was 1.251 billion euros, a 18.3% decrease year-on-year; adjusted net income was 328 million euros, a sharp drop of 46.8% year-on-year; net income was 62 million euros, a sharp drop of 82.6% year-on-year.

Arkema also announced it will continue to streamline and optimize its organizational structure, with its workforce expected to decrease by approximately 3% annually over the next three years.

According to its annual report, by the end of 2025, Arkema's total number of employees decreased to 20,648, a decrease of 434 from 2024. If the optimization plan is used for estimation, Arkema may lay off around 1,800 people in the next three years.

5. Bruckner partners with BB Engineering to launch the world's first 360mm PET single screw extruder

BB Engineering Company has recently announced that it has completed the commissioning and operation of two single-screw extruders with a screw diameter of 360 mm, which are the first machines of this specification for processing PET to be put on the market. The equipment has been installed at a base in China, as part of Bruckner's biaxially oriented polyethylene terephthalate (BO-PET) production line, used for producing high-quality optical films.

6. Enval will showcase bio-based composites for aerospace applications at the JEC Composites Show in France in 2026.

EnHuaLi will highlight its newly developed Tepex® and UDea® series of composite materials—specifically engineered for the aerospace and UAV manufacturing sectors—at the 2026 JEC Composites Show in France. Many products within this series are bio-based, supporting manufacturers in the aerospace and UAV industries in transitioning from thermoset to thermoplastic structural materials.

The products displayed at the Enmax booth include aviation and drone-specific composite materials.

The new polyphenylene sulfide and polyetherimide composite material, Tepex® dynalite series, features high-temperature resistance, chemical corrosion resistance, and excellent inherent flame retardancy, with potential applications including seat shells, interior panels, cabin partitions, and flaps in aircraft interior components.

7. Avantium partners with Will & Co to advance the application of FDCA in coatings, adhesives, sealants, and elastomers.

Recently, Avantium, a leading company in the field of renewable and circular polymers, and Will & Co B.V., a distributor of specialty (bio-based) chemicals, announced a partnership aimed at accelerating the application of furan dicarboxylic acid (FDCA) in the coatings, adhesives, sealants, and elastomers (CASE) sector. FDCA is a versatile bio-based raw material capable of enhancing the performance of synthetic materials, including alkyd resins, surfactants, and polyester polyols used in everyday applications such as paints, adhesives, flooring, roofing materials, pipes, automotive parts, and construction materials. This collaboration will leverage Will & Co's strong presence and expertise in the CASE industry along with Avantium's patented YXY® technology to jointly produce and promote FDCA as a sustainable bio-based raw material.

Overseas Macro Market:

[US “Ford” Aircraft Carrier Arrives in Israeli Waters] According to information obtained by journalists, the U.S. aircraft carrier “Ford” arrived in Israeli waters on February 27 local time and is heading toward the Israeli port of Haifa for a port call.

[Ministry of Commerce Decides to Lift Additional Tariffs on Certain Canadian Imports as Part of Anti-Discrimination Measures] The Ministry of Commerce issued Announcement No. 13 of 2026, announcing adjustments to anti-discrimination measures against Canada. Previously, China had implemented corresponding countermeasures in response to Canada’s imposition of additional tariffs on Chinese electric vehicles and steel and aluminum products. Recently, through consultations, China and Canada have reached a preliminary joint arrangement, and the Canadian government has partially adjusted its relevant tariff measures. In light of this, the Ministry of Commerce has decided to lift the additional tariffs on certain Canadian imports imposed as part of anti-discrimination measures. The new adjustment will enter into force on March 1, 2026, and remain valid until December 31, 2026.

RMB Options Bets Heat Up as Traders Anticipate a Potential 5% Appreciation by Year-End Betting on RMB strength in the foreign exchange options market has intensified, with traders positioning for a possible rise in the RMB/USD exchange rate toward 6.50 by year-end. USD/CNY options trading volume surged on Thursday, reaching its highest level since at least November 2024—the month Donald Trump was re-elected U.S. President—and positions clearly reflect an expectation of RMB appreciation, including bets on gains of approximately 5%. According to data from the Depository Trust & Clearing Corporation (DTCC), trading volume in USD/CNY put options (i.e., bets on RMB appreciation) reached or exceeded $100 million—twice the volume of call options for this currency pair.

[US Central Command Chief Briefs Trump on Military Options Against Iran] On February 26 local time, General Brad Cooper, Commander of U.S. Central Command, briefed President Trump on military options against Iran. As the highest-ranking U.S. military commander in the Middle East, this was Cooper's first such briefing to Trump since the Iran crisis escalated in December last year.

[The People's Bank of China has decided to lower the foreign exchange risk reserve ratio for forward foreign currency sales to 0] To promote the development of the foreign exchange market and support enterprises in managing exchange rate risks, the People's Bank of China has decided that, starting from March 2, 2026, the foreign exchange risk reserve ratio for forward foreign currency sales will be reduced from 20% to 0. Moving forward, the People's Bank of China will continue to guide financial institutions in optimizing their services for enterprises to hedge against exchange rate risks, maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level.

Price Information:

The central parity rate of the RMB against the US dollar was set at 6.9228, unchanged from the previous trading day; the official closing rate on the previous trading day was 6.8397, and the overnight session closed at 6.8500.

Upstream Raw Material USD Market Price

CFR Northeast Asia: USD 695/ton, stable; CFR Southeast Asia: USD 685/ton, stable

Northeast Asia propylene FOB Korea average price stable at $790/ton; CFR China average price stable at $835/ton.

North Asia CIF prices for frozen cargo: propane at USD 597–599 per metric ton; butane at USD 597–599 per metric ton.

South China cryogenic cargo March arrival prices: propane $616-626/ton; butane $615-621/ton

Taiwan region frozen cargo CIF price, propane 597-599 USD/ton; butane 597-599 USD/ton

[LLDPE US Dollar Market Price]

Film: 820 USD/ton (CFR Shanghai)

Injection molding: 925 USD/ton (CFR Huangpu)

[HDPE USD Market Price]

Film: USD 910–920/ton (CFR Huangpu)

Hollow: 858-1040 USD/ton (CFR Huangpu);

Pipe: No quotation available

[LDPE US dollar market price]

Film: 1060 USD/ton (CFR Dongguan)

Coating: No quote.

PP US Dollar Market Price

Homopolymer: $840-900/ton (CFR Huangpu);

Copolymer: USD 1,020/ton (CFR Nansha);

Film material: 1020 USD/ton (CFR Huangpu)

Transparent: USD 1,070–1,120/ton (CFR Huangpu);

Pipe material: $1,130 per ton (CFR Shanghai).