Iraq Ceasefire Takes Effect ! Covestro Acquires Swiss Film Manufacturer ; Ensinger Expands The PI Production Line !

International News Digest:

Raw Materials News- Covestro acquires Pontacol: expansion in specialty films   

Automotive News-Audi Considers New U.S. Plant with Costs up to €4 Billion

Packaging News- India’s Dhunseri Ventures plans Rs22 billion polyfilm capacity expansion

Medical News-“First of its kind” inhaler to reshape respiratory drug delivery

Macro News-Japan Still Studying Timing for Next Round of U.S. Trade Talks

Price Information-Ethylene Asia: CFR Northeast Asia $840/MT; CFR Southeast Asia $860/MT

Detailed International News:

1.Iran Mulls Closing Strait of Hormuz

Iranian officials hinted at potentially closing the Strait of Hormuz, a statement that triggered a surge in international crude oil prices. Goldman Sachs warned that in an extreme-risk scenario, prolonged blockade of the Strait could drive global oil prices to over $100 per barrel. Located between Oman and Iran, the Strait of Hormuz is the only maritime passage connecting the Persian Gulf to the Indian Ocean, handling one-third of global seaborne crude oil transport and one-fifth of liquefied natural gas (LNG) shipments. The U.S. Energy Information Administration (EIA) has dubbed it "the world's most important oil chokepoint."

2. Covestro Acquires Pontacol: Expansion in Specialty Films  

On June 23, 2025, Covestro has signed an agreement to acquire Pontacol, a Swiss manufacturer of multilayer adhesive films. With this acquisition, Covestro strategically expands its specialty films portfolio and further advances the implementation of its "Sustainable Future" corporate strategy. At the same time, the company continues to consistently expand its growth in sustainable and innovative business areas.

3. India’s Dhunseri Ventures plans Rs22-billion polyfilm capacity expansion

India’s Dhunseri Ventures Ltd (DVL) plans to invest rupee (Rs) 22.4 billion ($260 million) to expand its packaging film capacity through brownfield and greenfield expansions, a company official said on Tuesday.The expansion would be done through its wholly owned subsidiary Dhunseri Poly Films Pvt Ltd (DPFPL).

4.Audi Considers New U.S. Plant with €4B Cost

Aiming to avoid tariff conflicts between the U.S. and the EU, Audi is considering building a new plant in the United States. Reports indicate that establishing a plant in the southern U.S. would be the costliest option under consideration, with company sources estimating the investment could reach €4 billion (approximately ¥33.1 billion).

5. Ensinger to expand production capacity of polyimide powder

Ensinger to expand production capacity of polyimide powderPlastics processor Ensinger is increasing the production capacity of its TECAPOWDER product line. The polyimide material will be produced not only at the company’s site in Lenzing, Austria, but also in Obernburg am Main, Germany. The new production line at the Industrie Centre Obernburg (ICO) is expected to be operational by 2027.

6. “First of its kind” inhaler to reshape respiratory drug delivery

Cambridge Healthcare Innovations (CHI), a start-up designing and licensing revolutionary inhaler technology, has announced Quattrii, the ‘first ever’ dry powder inhaler (DPI) engine that is capable of delivering large volumes of biologic and mRNA molecules in a single inhalation. The engine will be available for pharmaceutical companies to start using in Phase 1 clinical trials from Q4 of this year. 

7. Cititoy Invests in Indonesia Plant with 4,000 Workers

Following reports of toy manufacturers like GFT, Delin, Huaden, Weixing, Yunhao, Hualong, Qifeng, Jinfu, Lianzhi, Xuri, and Longchang investing in Indonesian factories, global toy giant Cititoy is preparing to build PT Kids Play Indonesia in Subang Smartpolitan, Indonesia. The first-phase project is scheduled for completion and operation in September 2025, with all products to be exported via Patimban Seaport.

8. First PP Packaging Plant in Russia's Zabaykalsky Krai Starts Operation, with an annual capacity of 1.7 million to fill the regional gap

A polypropylene packaging material production plant has been built in Russia 's Transbaikal region. The enterprise produces polypropylene mesh woven bags on a large scale for the storage and transportation of fruit and vegetable products. At present, there is no similar enterprise in the region.

9. Mexico's Chemical Industry Poised to Attract $50B Investment

José Carlos Ponce, President of Mexico's National Chemical Industry Association (ANIQ) and CFO of Mexican chemical producer Alpek, stated that the Mexican chemical sector could attract $50 billion in investment over the next decade if key challenges—including the operational performance of state-owned energy giant Pemex—are addressed.

Overseas Macro Market Information

1.Japan Still Finalizing Timing for Next U.S. Trade Talks

Japan's chief negotiator and Minister of Economic Revitalization, Ryō Akasawa: Committed to reaching a mutually beneficial trade agreement with the U.S., without setting a deadline; still studying timing for the next negotiation round.

2.South Korea Seeks Exemption from U.S. Auto and Steel Tariffs

The South Korean government stated that Trade Minister Yeo Han-koo held his first meeting with U.S. Trade Representative Jamieson Greer in Washington, D.C. Yeo emphasized the importance of exempting key goods like automobiles and steel from U.S. tariffs and expressed South Korean industry concerns over recent developments in U.S. export control policies. Both sides reaffirmed their commitment to swiftly reaching a mutually beneficial agreement.

3.Iran and Israel Announce Formal Ceasefire

Local time on June 24, Iran and Israel declared a formal ceasefire.

4.Trump Confirms Iran-Israel Ceasefire in Effect

At 1:00 a.m. ET on the 24th, U.S. President Trump posted on social media: "Ceasefire is now in effect. Do not violate." Earlier, at 6:02 p.m. ET on the 23rd, Trump announced the ceasefire would begin in approximately 6 hours—12:00 a.m. ET on the 24th. The agreement includes two 12-hour ceasefire phases: Iran initiates the first, followed by Israel, with the war officially ending after 24 hours.

5.Japan's 20-Year JGB Bid-to-Cover Ratio Hits Highest Since March

After Japan's Ministry of Finance reduced ultra-long-term bond issuance, the bid-to-cover ratio for 20-year Japanese government bonds (JGBs) reached 3.11 in Tuesday's auction—the highest since March. The previous auction in May had a ratio of 2.5, a more than 10-year low, though still below the 12-month average of 3.31.

6.Indian Officials: India and U.S. Still Aim to Reach Trade Deal by July Deadline

Indian officials said India and the U.S. hope to finalize a preliminary trade agreement before the U.S. tariff hike deadline on July 9, though challenges remain—particularly in sectors like agriculture.

Price Information

CNY/USD parity Rate Reaches Highest Since November 2024

The central parity rate was set at 7.1656, up 54 pips from the previous day. The previous day's parity rate was 7.1710, official closing price 7.1858, and overnight closing price 7.1772.

Upstream Raw Materials (USD Prices)

Ethylene Asia: CFR Northeast Asia $840/MT; CFR Southeast Asia $860/MT

Propylene Northeast Asia: FOB South Korea average $750/MT (+$35); CFR China average $800/MT (+$35)

North Asia LPG C&F: Propane $589–591/MT; Butane $558–560/MT

South China LPG July C&F: Propane $617–627/MT; Butane $554–564/MT

Taiwan LPG C&F: Propane $589–591/MT; Butane $558–560/MT

LLDPE USD Prices

Film: $920/MT (CFR Huangpu);

Injection: $950/MT (CFR Dongguan)

HDPE USD Prices

Film: $910–920/MT (CFR Huangpu);

Hollow: $860–870/MT (CFR Huangpu)

LDPE USD Prices

Film: $1,105–1,130/MT (CFR Yantian);

Casting: $1,330/MT (CFR Huangpu)

PP USD Prices

Homopolymer: $890–975/MT (CFR Huangpu) (-$5);

Copolymer: $965–995/MT (CFR Huangpu)

Transparent: $1,120/MT (CFR Huangpu) (+$20);

Pipe: $1,160/MT (CFR Shanghai)