[Overseas News] US Just Relaxed Rebates for Aluminum Can Stock, Saudi Arabia Turns Around and Imposes 38.7% Tax on Aluminum Can Lids

International News Digest:

Raw Material News: Hengyi Petrochemical's profits surge over 100-fold; BASF makes significant concessions in acquisition of Evonik; Celanese raises prices

Packaging News: U.S. Just Eased Tax Rebate Restrictions on Aluminum Can Stock, While Saudi Arabia Imposed a 38.7% Tariff on Aluminum Easy-Open Ends: The "Fire and Ice" 20 Days for Chinese Aluminum Cans

Electronics and Appliances News: In the AI era and amid economic downturn, total home appliance sales have stagnated while their structure has been reshaped.

Auto News: Export Tax Rebate Cut! Chinese Automakers Pivot to New Overseas Markets

Engineering Plastics News: Covestro Slashes PC Production Lines in Antwerp from Four to One! Global PC Focus Shifts Eastward

Mechanical Industry News: Borouge International Expands Polyolefin Mechanical Recycling Capacity in Europe

Macro News:Senior U.S. and South Korean fiscal and monetary policy officials held meetings in Thailand.

Price Information:CFR Southeast Asia USD 1,100/ton

1、Hengyi Petrochemical’s performance surges over 100-fold; BASF makes significant concessions in acquiring Evonik; Celanese raises prices

Rongsheng Petrochemical: Net profit for the first three quarters is expected to increase by 777.93%–822.95% year-on-year

On the evening of October 14, Rongsheng Petrochemical disclosed its earnings forecast for the third quarter of 2026, projecting a net profit attributable to shareholders of the parent company for the first three quarters at RMB 7.8 billion to RMB 8.2 billion, representing a year-on-year increase of 777.93% to 822.95%. The net profit for the third quarter is expected to range from RMB 2.689 billion to RMB 3.089 billion, marking a year-on-year growth of approximately 840% to 980%. With a second-quarter net profit of RMB 2.295 billion, the third-quarter net profit is estimated to rise by about 17% to 34% quarter-on-quarter, indicating sustained improvement in operational quality.

Rongsheng Petrochemical stated in its announcement that the prosperity of the petrochemical industry has rebounded compared to the same period last year, with favorable conditions in overseas refined oil markets. The company has dynamically optimized its production and sales strategies, leading to a significant recovery in processing margins for major products and an improvement in gross profit levels. Leveraging its global-scale integrated refining and chemical complex, the company has continuously carried out technological upgrades and process optimizations to fully tap into existing capacity potential, thereby enhancing operational efficiency and flexible production capabilities. Against the backdrop of a rising crude oil price center, the company’s full-industry-chain advantages have become more pronounced, with stable operations and smooth production and sales across all segments during the first half of the year. By closely monitoring market dynamics and adopting a prudent and diversified procurement strategy, the company has effectively balanced cost management and supply chain resilience while ensuring a stable crude oil supply.

Hengyi Petrochemical’s first-three-quarter performance surges over 100-fold

On the evening of October 15, Hengyi Petrochemical released its earnings forecast, projecting a net profit attributable to shareholders of RMB 7.9 billion to RMB 8.1 billion for the first three quarters of 2026, representing a year-on-year increase of 3,318.59% to 3,405.13%. The net profit after deducting non-recurring items is expected to range from RMB 7.83 billion to RMB 8.03 billion, with a year-on-year growth rate of 9,836.98% to 10,090.80%.

Guoen Shares Acquires Equity Stake in New Materials Company for RMB 1.5 Billion

On October 12, Guoen Shares (002768.SZ) announced that it would acquire an 80% equity stake in Sichuan Zhongfuneng New Material Technology Co., Ltd. for RMB 1.504 billion in cash. Upon completion of the transaction, Zhongfuneng will become a controlling subsidiary included in the consolidated financial statements. The announcement specified that the purpose of the transaction is to advance the company’s “high-end and platform-oriented” development strategy, further solidify its layout in the high-end specialty materials industry, and strengthen the integration of technical resources. The proposal was approved at the Fourth Meeting of the Sixth Board of Directors held on October 10. The transaction does not constitute a major asset restructuring nor a related-party transaction.

Celanese announces price increase for PA6/PA66 products in the Americas

Celanese has announced a price increase for certain polyamide products sold in the Americas. This adjustment aims to address rising costs and evolving market conditions, while also reflecting Celanese’s commitment to ensuring reliable supply, maintaining product quality, and delivering excellent customer service. The price adjustment will apply to all shipments made on or after October 19, 2026, or as otherwise specified in contractual agreements. Additionally, price increases for specific grades may exceed the standard levels outlined below.

2、Within 20 days, China’s aluminum can industry received two contradictory “notices” from two different markets. A closer look at the official documents reveals that this is not a matter of preference or bias, but rather a reflection of each country’s position in the supply chain: the United States is easing restrictions on upstream raw materials, while Saudi Arabia is erecting barriers around downstream finished products.

One refunds your taxes in late September, while the other raises them in mid-October—but don’t rush to conclude that “the US is friendly and Saudi Arabia is oppressive.”

Two "notice slips" in opposite directions within 20 days

Friends in the metal packaging industry, it’s worth taking a fresh look at your export orders over the next 20 days.

3、As the industry enters a phase of stock-based development and the AI era dawns, the home appliance market is undergoing a quiet transformation: the logic of aggregate growth has become ineffective, the market has shifted into a channel driven by replacement demand, and the demand structure is being reshaped on three fronts. What underlying forces of change are hidden behind this shift?

As we enter the AI era, consumers are undergoing a profound transformation. User demand for home appliances is shifting in ways far more dramatic than surface-level figures suggest. In terms of overall volume, the traditional growth logic has largely become ineffective, with the market entering a phase driven by “replacement of existing stock” and “policy support.” Structurally, demand is being reshaped along three dimensions: divergence in category popularity, K-shaped segmentation across price tiers, and a shift in the value anchor from “functionality” to “intelligence and experience.”

For the industry, growth is no longer merely about volume but rather a shift from standalone products to comprehensive solutions. For practitioners, the middle ground is vanishing, leaving only two viable paths: moving upmarket into high-end AI or downmarket into extreme cost-effectiveness. For consumers, rational upgrading—characterized by the mindset of “saving where possible and spending where worthwhile”—has become the norm. This is the true hallmark of our era’s transformation.

4、Recently, the Ministry of Finance and the State Taxation Administration issued an announcement clarifying that, starting from 2027, the VAT rebate rate for new energy vehicle exports will be reduced from 13% to 9%.

The four-percentage-point adjustment is far more than a mere fluctuation in foreign trade figures; it serves as a stress test for the existing business model of China’s automotive exports. With the domestic auto market mired in prolonged price wars and automakers’ profitability under sustained pressure, overseas exports have become a crucial lever for many companies to offset shrinking domestic profit margins.

In recent years, leveraging China’s comprehensive industrial supply chain and export tax rebates, exporting complete vehicles has become the most convenient path for automakers to test overseas markets. Now, as these policy benefits gradually diminish, this trade model—relying on low prices to drive scale—has reached a turning point. China’s automotive global expansion is shifting from simple “vehicle exports” to systematic, localized ecosystem integration.

This transformation is fundamentally a shift in the stage of industrial development. Policy orientation is no longer solely focused on encouraging the expansion of export volume, but rather on selecting enterprises with genuine global operational capabilities. The strategy of relying merely on tax rebates to build price advantages is no longer sustainable; only automakers willing to make long-term investments in local production, supply chain establishment, and channel and service network construction can successfully navigate through economic cycles.

5、On October 15, Covestro announced plans to consolidate its polycarbonate (PC) production lines at its Antwerp, Belgium site from four to one, while simultaneously ceasing local production of bisphenol A (BPA) at the facility.

According to ICIS data, the facility has a nominal polycarbonate (PC) production capacity of 240,000 tonnes per year, with individual line capacities ranging from 40,000 to 110,000 tonnes per year, and a combined bisphenol A (BPA) unit capacity of 245,000 tonnes per year. The restructuring may affect 260 of the site’s 970 employees. The company has initiated the consultation process required under Belgian law, and the final decision will be made upon completion of these consultations.

Following Mitsubishi Gas Chemical’s announcement to shut down its 120,000-ton polycarbonate (PC) plant in Kashima by March 2028, and SABIC’s sale of its European and American engineering thermoplastics business for $450 million, another industry giant has signaled its retreat from the general-purpose PC market. The company scaling back production is none other than the world’s largest PC producer.

6、Borouge International is expanding its mechanical recycling capacity for polyolefins in Europe. The company announced investments in its facilities in Niedergebra, Germany, and Wildon, Austria. According to Borouge, this expansion aims to meet growing customer demand for mechanically recycled polyolefins produced in Europe. It also seeks to provide more reliable access to circular materials, which customers require due to brand preferences, evolving regulatory requirements such as the Packaging and Packaging Waste Regulation (PPWR), and the need for supply resilience.