EU Suspends Review of ADNOC's Bid for Covestro! ExxonMobil Seeks Exit from European Chemical Industry

International News Guide:

Raw Material News - €1.47 Billion Acquisition Halted! EU Suspends Review of ADNOC's Bid for Covestro

Auto News - Toyota Plans to Produce Electric Vehicles in Europe for the First Time

Packaging News - Sappi Launches Recyclable, High-Barrier Monomaterial Paper

Medical News - Personalized Exoskeletons for Therapeutic Purposes

Macro News - Unexpected Drop in German Factory Orders Dashes Hopes of Economic Recovery

Price Information - Ethylene Asia: CFR Northeast Asia $840/ton; CFR Southeast Asia $840/ton, up $5/ton

Detailed International News:

€1.47 Billion Acquisition Halted! EU Suspends Review of ADNOC's Bid for Covestro

According to a Reuters report, a source revealed on Wednesday that EU antitrust regulators are preparing to suspend their investigation into Abu Dhabi National Oil Company (ADNOC)'s €1.47 billion ($17 billion) bid for German chemical firm Covestro. The source stated that this temporary suspension will give the European Commission more time to gather information about the deal. EU antitrust supervision is mainly undertaken by the European Commission, whose Competition Directorate-General serves as the primary enforcement body for EU antitrust laws, responsible for overseeing competition in the EU internal market and cracking down on anti-competitive practices. The European Commission declined to comment on the suspension of the investigation into the Covestro acquisition.

ExxonMobil Seeks Exit from European Chemical Sector

ExxonMobil is considering selling its chemicals plants in the UK and Belgium, Reuters reported today based on an article in the Financial Times. The Houston-based petrochemicals giant reportedly has held early-stage discussions with advisors on possible sales that could bring in up to $1 billion, the news outlets reported.

Over 3,000 Jobs Cut! Another Oil Giant Announces Major Layoffs

Five sources from ConocoPhillips revealed to Reuters that the company will cut 20% to 25% of its workforce, putting 2,600 to 3,250 employees at risk of unemployment globally. Following the news, ConocoPhillips' stock price fell 3.9% to $95.11. Dennis Nuss, a spokesperson for ConocoPhillips, told Reuters: "Most of the layoffs will be completed by the end of the year." Two sources stated that the new organizational structure and management plan will be announced in mid-September, with the entire restructuring plan expected to be fully completed by 2026.

Personalized Exoskeletons for Therapeutic Purposes

The Fraunhofer Institute for Machine Tools and Forming Technology (IWU) utilizes innovative shape memory alloys, stepper motors, and 3D printing technologies to create precisely fitted, gently supportive hand exoskeletons. The idea is that the exoskeleton must first fit perfectly to the anatomy of the hand. Human hands vary not only in size but also in proportion – even the left and right hands of the same person can differ significantly.

Versalis and Veritas Sign Agreement to Promote Advanced Plastic Recycling

Versalis, Eni’s chemical company, and Veritas, one of Italy’s largest multi-utilities operating in the Metropolitan City of Venice and in parts of the Province of Treviso, today signed an agreement to promote the circular economy, with a particular focus on developing joint initiatives to valorise post-consumer and post-industrial plastics. The agreement was signed by Adriano Alfani, Chief Executive Officer of Versalis, and Andrea Razzini, General Manager of Veritas.

Brazil Imposes 5-Year Anti-Dumping Duties on China-Related Polyester Staple Fiber, Up to $390.94/ton

Recently, the Executive Management Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 778 of 2025, making an affirmative final anti-dumping ruling on polyester staple fiber (Portuguese: fibras de poliéster) originating from China, India, Vietnam, and Thailand. It decided to impose anti-dumping duties on the involved products from the above countries for 5 years, as follows: China $74.98 - $390.94/ton, India $194.69/ton, Vietnam $297.95/ton (Vietnam New Century Polyester Fibre Co., Ltd. is exempted), and Thailand $171.21/ton (Zhongthai Chemical Fiber Co., Ltd. is exempted). Details of the duties are shown in the attached table. The Brazilian tariff code for the involved products is 5503.20.90. This resolution takes effect from the date of issuance.

Toyota Plans to Produce Electric Vehicles in Europe for the First Time

Toyota Motor announced on Wednesday that it will produce a pure electric vehicle at its factory in the Czech Republic, marking the brand's first local manufacturing of fully electric vehicles in Europe. At the same time, Toyota also plans to invest in building a new battery assembly facility at the factory. The Japanese automaker has not yet disclosed specific details of the pure electric model or its production start time, but clearly stated that it will invest approximately €680 million (about RMB 5.658 billion) to expand its factory in Kolín. Toyota also noted that the Czech government will invest up to €64 million (about RMB 532 million) in the dedicated battery facility.

Five Southeast Asian Countries Issue Rules of Origin, Intensify Crackdown on "Origin Washing" in Transshipment Trade

Affected by Trump's 40% transshipment tariff, Southeast Asian countries have stepped up efforts in areas including transshipment, Regional Value Content (RVC), Rules of Origin (ROO), and inspections on imports from China, intensifying the crackdown on "origin washing". "Origin washing" refers to the practice where goods are transported via a transit country, undergo minimal processing or repackaging there, and then re-exported with a new certificate of origin to evade tariffs or non-tariff trade barriers. This practice is often accompanied by the forgery of certificates of origin. Southeast Asian countries have signed trade agreements with the United States (such as Vietnam 20%, Thailand/Indonesia/Philippines/Malaysia 19%, Singapore 10% tariff agreements), committing to enhance supply chain transparency and severely crack down on "origin washing".

Sappi Launches Recyclable, High-Barrier Monomaterial Paper

Sappi Europe has launched its Guard Pro OHS and Guard Pro OMH monomaterial papers, which are said to be recyclable and provide high-barrier protection without sacrificing production efficiency. These new solutions aim to help brand owners comply with the EU's increasingly stringent packaging regulations, such as the Packaging and Packaging Waste Regulation (PPWR), and provide paper-based alternatives for fast-paced production lines to replace plastic and multi-layer composite films.

Overseas Macro Market:

【Unexpected Drop in German Factory Orders Dashes Hopes of Economic Recovery】

German factory orders fell unexpectedly in July, dampening optimism that the country could soon emerge from a three-year recession. Statistics authorities said on Friday that factory orders fell 2.9% month-on-month due to a decline in large-scale orders. Economists had forecast a 0.5% increase. Excluding large-scale orders, orders would have risen by 0.7%. The report highlights the challenges facing Europe's largest economy as it seeks to emerge from a prolonged economic downturn while coping with higher U.S. tariffs and the impact of the Russia-Ukraine war. Although businesses have grown more optimistic that government spending stimulus will revive growth, they still view the current situation as difficult.

【Indian Official Says No Need to "Panic" Over Delayed Trade Deal with U.S.】

India's Minister of Commerce and Industry, Piyush Goyal, said that negotiations on the trade deal with the United States should be allowed to continue, and there is no need to "panic" over the delay. In an interview with Asian News International, Goyal stated: "We continue to maintain a very good relationship with the United States, and I am sure we will be able to resolve some of these issues and reach a fair, just and balanced agreement." "There has never been a timeline for negotiations," Goyal added. "You should be patient because you are looking at the long term."

【USD/JPY Remains in Downtrend; Details of Japan's U.S. Investment Mechanism Disclosed – Japan Faces Higher Tariffs if It Fails to Honor Investment Commitments】

USD/JPY remains in a downtrend, currently trading at 148.17. Reports indicate that according to a document detailing Japan's $550 billion U.S. investment mechanism, Japan will face the risk of higher tariffs if it fails to provide funds for investment projects selected by U.S. President Trump. U.S. Commerce Secretary Gina Raimondo and Japan's Chief Trade Negotiator Kiyoshi Chugoku signed a memorandum of understanding on the investment mechanism in Washington on Thursday.

Price Information:

【CNY/USD Central Parity Rate】

The central parity rate of CNY against USD was reported at 7.1064, down 12 pips; the previous trading day's central parity rate was 7.1052, the previous trading day's official closing price was 7.1402, and the overnight closing price was 7.1401.

【Upstream Raw Material USD Market Prices】

Ethylene Asia: CFR Northeast Asia $840/ton; CFR Southeast Asia $840/ton, up $5/ton.

Propylene Northeast Asia: FOB Korea average $760/ton; CFR China average $790/ton.

Northeast Asia frozen cargo CIF: Propane $537-538/ton; Butane $547-548/ton.

South China frozen cargo CIF for early October: Propane $587-597/ton; Butane $567-577/ton.

Taiwan region frozen cargo CIF: Propane $537-538/ton; Butane $547-548/ton.

【LLDPE USD Market Prices】

Film: $860-910/ton (CFR Huangpu);

Injection Molding: $950/ton (CFR Dongguan);

【HDPE USD Market Prices】

Film: $910-970/ton (CFR Huangpu);

Blow Molding: $860/ton (CFR Huangpu);

Injection Molding: $870/ton (CFR Huangpu);

Pipes: $1025/ton (CFR Huangpu);

【LDPE USD Market Prices】

Film: $1115/ton (CFR Huangpu);

Coating: $1280/ton (CFR Huangpu);

【PP USD Market Prices】

Homopolymer: $915-965/ton (CFR Huangpu);

Copolymer: $900/ton (CFR Nansha);

Film Grade: $1020/ton (CFR Nansha);

Transparent Grade: $955-1050/ton (CFR Huangpu);

Pipes: $1130/ton (CFR Shanghai);