International News Guide: Raw Materials - EVONIK Releases Q2 2025 Earnings Report: Declining Demand Impacts Performance Automotive - ZF Announces Mass Layoffs and Pay Cuts! 12,000 Employees Protest on Streets Packaging -BioLogiQ Receives $5 Mn Grant to Develop Innovative Packaging for Fresh Produce Medical - French Medtech Molding Connection for D&M Plastics Electronics - APPLE Releases Q3 2025 Fiscal Year Earnings Report: iPhone Sales Surpass 3 Billion Units, China Market Returns to Growth Construction - ORIENTAL YUHONG Plans to Acquire Leading Chilean Building Materials Retailer for RMB 880 Million Macro - JAPAN Insists on U.S. Fulfillment of Bilateral Agreement, Urges Immediate Tariff Reduction on Automobiles and Parts Price - Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne   International News Details: 1. EVONIK Releases Q2 2025 Earnings Report: Declining Demand Impacts Performance Against an increasingly challenging economic environment, EVONIK INDUSTRIES AG reported an adjusted EBITDA of €509 million for Q2 2025, a 12% decrease compared to the strong performance in the same period last year. Over half of the decline in Q2 sales was attributed to unfavorable exchange rate fluctuations and the divestiture of the superabsorbent business, which was still part of EVONIK in the same period last year. Sales volume dropped 4% year-on-year, while product prices remained generally stable. Performance of C4 chain products was below average. Extended maintenance shutdowns of production facilities for products such as polyamide 12 also had a certain impact on sales. EVONIK expects that if the global economy does not deteriorate further, the full-year 2025 adjusted EBITDA will reach the lower end of the forecast range (€2.0 billion to €2.3 billion). 2. U.S. Imposes Largest-Ever Sanctions on IRAN! Involving a Chinese Port Company Recently, the U.S. TREASURY DEPARTMENT’S OFFICE OF FOREIGN ASSETS CONTROL (OFAC) announced sanctions on a shipping network controlled by Iranian businessman Mohammad Hossein Shamkhani, involving over 50 entities, individuals, and more than 50 oil tankers and container ships. This marks the largest-scale sanctions imposed by the U.S. government since its "maximum pressure" campaign against IRAN in 2018. 3. TEIJIN’s Bio-Based Polycarbonate (PC) Used in Organ Pipe Manufacture, Showcased at OSAKA-KANSAI WORLD EXPO   TEIJIN LIMITED announced that its tubes molded from biomass-derived polycarbonate (PC) resin have been used to manufacture the world’s first bio-plastic pipe organ. These transparent tubes were produced by Teiyo Co., Ltd., a subsidiary of TEIJIN LIMITED specializing in plastic molding. This innovative pipe organ will be exhibited in the "Rebirth Challenge" zone of the OSAKA Medical and Health Pavilion during the OSAKA-KANSAI WORLD EXPO in JAPAN from August 19 to 25, 2025. 4. ORIENTAL YUHONG Plans to Acquire Leading Chilean Building Materials Retailer for RMB 880 Million On the evening of July 31, ORIENTAL YUHONG announced that its wholly-owned subsidiaries ORIENTAL YUHONG Overseas Development Co., Ltd. and ORIENTAL YUHONG International Trade Co., Ltd. plan to jointly invest approximately $123 million (about RMB 880 million) with their own funds to acquire 100% equity of Construmart S.A. in Chile from the counterparty. After the transaction is completed, ORIENTAL YUHONG Overseas Development Co., Ltd. will hold 99% of Construmart’s equity, and ORIENTAL YUHONG International Trade Co., Ltd. will hold 1% of Construmart’s equity. 5. French Medtech Molding Connection for D&M Plastics French injection molder Groupe JBT has acquired D&M Plastics, an injection molding firm based in Burlington, IL, primarily serving the healthcare sector. The acquisition announced earlier this month will enable JBT to deliver reliable, localized services to its North American customer base, especially in terms of ISO Class 7 cleanroom production needs, the company said. 6. BioLogiQ Receives $5 Mn Grant to Develop Innovative Packaging for Fresh Produce BioLogiQ has been awarded grant funding through the USDA Foreign Agricultural Service’s $5 million Sustainable Packaging Innovation Lab (SPIL) at Clemson University, launched through the Assisting Specialty Crop Exports (ASCE) Initiative.The BioLogiQ/Clemson partnership will develop and commercialize cutting-edge packaging solutions to help U.S. farmers meet evolving global packaging and trade standards. The project will focus on flexible film, pallet wrap, and protective packaging used for fruits, vegetables, nuts, and specialty greens. 7. APPLE Releases Q3 2025 Fiscal Year Earnings Report: iPhone Sales Surpass 3 Billion Units, China Market Returns to Growth On August 1, APPLE released its Q3 2025 fiscal year earnings report for the period ending June 28, with quarterly revenue recording the largest increase since December 2021. The earnings report shows that APPLE’s total revenue in Q3 reached $94.04 billion, a year-on-year increase of 10%, and net profit reached $24.43 billion, a year-on-year increase of 9%. Notably, APPLE’s revenue in the China market during this quarter was $15.369 billion, an increase of 4% compared to $14.728 billion in the same period last year, ending the decline in the previous two quarters and returning to growth. 8. ZF Announces Mass Layoffs and Pay Cuts! 12,000 Employees Protest on Streets German leading automotive parts supplier ZF GROUP recently announced plans to cut approximately 11,000 to 14,000 jobs across GERMANY by the end of 2028. This marks the largest layoff plan in the company’s history, with most layoffs coming from production departments, including R&D staff. In response to the austerity policies and layoff plans, more than 12,000 employees across GERMANY took to the streets to oppose the board’s plan to further cut thousands of jobs and continue to suppress wages. Achim Dietrich, Chairman of ZF’s General Workers’ Union, revealed that if all the management’s demands are implemented, employees will have to give up 25% to 30% of their annual compensation through measures such as shorter working hours, cancellation of one-time bonuses, and reduction of excessive benefits, with significant variations across regions and positions.   Overseas Macro Updates:   JAPANESE Government and Automotive Industry Exchange Views on U.S. Tariffs According to NHK, on the same day, JAPANESE Prime Minister Shigeru Ishiba met with heads of several JAPANESE automotive industry groups to exchange views on the U.S.-JAPAN tariff agreement. JAPANESE automotive industry groups called on the JAPANESE government to provide support for the supply chain and formulate policies to stimulate domestic demand. Masanori Kataoka, Chairman of the JAPANESE AUTOMOBILE MANUFACTURERS ASSOCIATION and Chairman of ISUZU MOTORS LIMITED, stated that he hopes the JAPANESE government will continue dialogue with the U.S. to further reduce tariffs. JAPAN Insists on U.S. Fulfillment of Bilateral Agreement, Urges Immediate Tariff Reduction on Automobiles and Parts On August 1, Chief Cabinet Secretary Yoshimasa Hayashi stated at a press conference that JAPAN will continue to urge the U.S. to fulfill the reached bilateral agreement, including reducing tariffs on automobiles and parts. Hayashi emphasized: "U.S. President Trump has signed an executive order under the U.S.-JAPAN agreement to reduce bilateral tariffs to 15%... The JAPANESE government still insists that the U.S. should immediately take action to implement the agreement terms, especially the tariff reduction measures on automobiles and automotive parts." EU Initiates Anti-Dumping Investigation into Chinese Polyamide Yarns On July 29, the EUROPEAN COMMISSION issued a notice announcing the initiation of an anti-dumping investigation into polyamide yarns originating from China. The dumping investigation period for this case is from July 1, 2024, to June 30, 2025, and the injury investigation period is from January 1, 2022, to the end of the dumping investigation period. A preliminary ruling for this case is expected to be made within 7 months, with a maximum extension of 8 months. JAPAN Plans to Raise Minimum Wage to a New Record High Again A panel of the JAPANESE MINISTRY OF HEALTH, LABOR AND WELFARE plans to recommend a approximately 6% increase in the national average minimum wage for the current fiscal year, which would be the largest increase since 2002. The agency added that the proposed hourly increase of approximately 1118 yen ($7.43) would exceed last year’s 5% increase and be the largest since the current system was implemented, but did not cite sources. The government of JAPANESE Prime Minister Shigeru Ishiba set a target last year to increase the average minimum wage by 42% to 1,500 yen per hour by 2020.   Price Information:   USD/CNY Central Parity 7.1496, down 2 pips; previous trading day’s central parity 7.1494, previous trading day’s official closing price 7.1930, overnight closing price 7.1998. Upstream Raw Materials USD Market Prices Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne. Propylene Northeast Asia: FOB Korea average price $730/tonne; CFR China average price $770/tonne. North Asia frozen cargo CIF price: propane $502-509/tonne; butane $472-479/tonne. South China frozen cargo for second half of August CIF price: propane $540-550/tonne; butane $510-520/tonne. Taiwan region frozen cargo CIF price: propane $502-509/tonne; butane $472-479/tonne. LLDPE USD Market Prices Film: $860-920/tonne (CFR Huangpu); Injection molding: $940/tonne (CFR Dongguan). HDPE USD Market Prices Film: $910/tonne (CFR Huangpu); Hollow: $855/tonne (CFR Huangpu); Pipe: $1,030/tonne (CFR Huangpu). LDPE USD Market Prices Film: $1,070-1,095/tonne (CFR Huangpu); Coating: $1,280/tonne (CFR Huangpu). PP USD Market Prices Homopolymer: $910-965/tonne (CFR Huangpu), up $10/tonne; Copolymer: $920-975/tonne (CFR Nansha); Transparent: $995-1,055/tonne (CFR Huangpu), down $5/tonne; Pipe: $1,160/tonne (CFR Shanghai).

International News Guide: Raw Materials News - Canada's Debrand receives CleanBC fund to tackle clothing plastic waste disposal challenges Automotive News - BMW Group's first-half net profit drops 29% year-on-year Electronics News - Iveco Group NV agrees to split its business Packaging News - Amcor develops lightweight polypropylene caps for household products Macro News - New Zealand government lifts ban on offshore oil and gas exploration Price Information - Ethylene Asia: CFR Northeast Asia $820/ton; CFR Southeast Asia $830/ton   Details of International News:   1.Trump announces suspension of de minimis exemptions for all countries On July 30 local time, the official website of the White House released an executive order signed by Trump, suspending the duty-free treatment for low-value imported products from all countries, namely the "de minimis" treatment. This means that small parcels exported to the United States by all countries/regions via postal services will no longer enjoy duty-free treatment. They must enter the United States through standard customs declaration procedures, submit complete import documents, and pay applicable tariffs and taxes, including additional tariffs. 2.Shell's adjusted profit in the second quarter is $4.26 billion Shell's second-quarter revenue was $65.41 billion, compared with an estimate of $64.8 billion; adjusted profit was $4.26 billion, compared with an estimate of $3.74 billion; adjusted earnings per share was $0.72, compared with an estimate of $0.60. 3.JD.com plans to acquire German electronics retail giant CEconomy AG On July 31, JD.com announced on the Hong Kong Stock Exchange that it has decided to make a voluntary public takeover offer to all shareholders of CECONOMY AG, the parent company of European consumer electronics retailers MediaMarkt and Saturn, through its wholly-owned indirect subsidiary JINGDONG Holding Germany GmbH. It will acquire all issued and outstanding bearer shares of CECONOMY at a cash consideration of 4.60 euros per share and establish a strategic investment partnership. The transaction values CECONOMY at approximately 2.2 billion euros, equivalent to more than 18 billion yuan. If the transaction is successfully completed, it will set a new record for Chinese e-commerce companies' overseas expansion into Europe. 4.Iveco Group NV has agreed to split its business Iveco Group will sell its defense business (IDV and ASTRA brands) to Leonardo SpA and the remaining business to Tata Motors Ltd. The total value of the two transactions is approximately 5.5 billion euros (equivalent to $6.3 billion). 5.Amcor develops lightweight polypropylene caps for household products Amcor has developed a polypropylene (PP) cap for household products, which combines a unique shape with a lightweight design, helping brands enhance visual appeal while contributing to their sustainability commitments. Amcor stated that this new "Hector Child-Resistant Cap (CRC)" weighs only 7.25 grams, making it one of the lightest caps on the market, which can significantly save materials and reduce carbon dioxide emissions. Compared with traditional 14-gram caps, an order of one million Hector caps can reduce plastic usage by 6.75 tons. 6.Origin partners with Hordijk to mass-produce sustainable PET caps in Europe Origin Materials and Dutch packaging manufacturer Royal Hordijk Packaging announced a strategic partnership to mass-produce polyethylene terephthalate (PET) caps, marking an important step in promoting circular packaging solutions in the European market. 7.Canada's Debrand receives CleanBC fund to tackle clothing plastic waste disposal challenges Debrand is a reverse logistics solutions provider based in Vancouver, Canada, serving apparel and retail brands in North America. The company has received more than $325,000 in funding from the "CleanBC Plastics Action Fund", which is jointly managed by the Government of British Columbia and Alacrity Canada and is part of the Ministry of Environment and Climate Change Strategy. 8.UK waste management giant Bifa closes Washington plastic recycling plant Bifa, a leading UK waste management company, announced the closure of its plastic recycling plant in Washington, Sunderland. According to "Sustainable Plastics", the plant ceased operations in early 2025 due to increasingly difficult market conditions, especially the sluggish demand for washed high-density polyethylene (HDPE) and polypropylene (PP) flakes, affecting approximately 80 employees. The Washington plant, built in 2020 with an investment of 7 million pounds (approximately 8.1 million euros), was a key part of Bifa's strategy to enhance the recycling capacity of commonly used plastic packaging (such as milk bottles, buckets, and trays made of HDPE and PP). In 2023, Bifa planned to invest another 13 million pounds to double the plant's capacity, but this expansion plan was later shifted to another Bifa plant in Redcar.   Overseas Macro Market Information:   【White House official: Trump will impose higher tariffs on countries that fail to reach trade agreements】 On July 30 local time, a White House official told the media that Trump will sign an executive order on July 31 local time to impose higher tariff rates on several countries that fail to reach trade agreements by the August 1 deadline. It may include some of the United States' largest trading partners, including Canada and Mexico. 【Bank of Japan announces interest rate decision, keeps rates unchanged】 The Bank of Japan approved the interest rate decision by a 9-0 vote, keeping the interest rate unchanged, in line with expectations. 【New Zealand government lifts ban on offshore oil and gas exploration】 On July 31 local time, the New Zealand government lifted the ban on offshore oil and gas exploration. New Zealand's Resources Minister Sean Jones pointed out that this move is expected to increase natural gas supply and ease energy cost pressures. However, the decision has triggered strong opposition from environmental groups in the country, who are worried that this policy may damage New Zealand's environmental image. 【BMW Group's first-half net profit drops 29% year-on-year】 On July 31, BMW Group announced that its total operating income in the first half of the year was 67.685 billion euros, a year-on-year decrease of 8.0%; net profit was 4.015 billion euros, a year-on-year decrease of 29.0%. 【Toyota suspends production due to tsunami impact】 Nikkei News reported that due to supply chain disruptions caused by the tsunami, Toyota Motor will suspend 11 production lines at 7 factories in Japan starting from Thursday night.   Price Information:   Ethylene Asia: CFR Northeast Asia $820/ton; CFR Southeast Asia $830/ton. Propylene Northeast Asia: FOB South Korea average price $730/ton, down $10/ton; CFR China average price $770/ton. North Asia frozen cargo CIF: propane $505 - $512/ton; butane $490 - $497/ton. South China frozen cargo CIF for August delivery: propane $540 - $550/ton; butane $525 - $535/ton. Taiwan region frozen cargo CIF: propane $505 - $512/ton; butane $490 - $497/ton. 【LLDPE US dollar market price】 Film: $860 - $920/ton (CFR Huangpu); Injection molding: $940/ton (CFR Dongguan); 【HDPE US dollar market price】 Film: $910/ton (CFR Huangpu); Hollow: $855/ton (CFR Huangpu); Pipe: $1030/ton (CFR Huangpu); 【LDPE US dollar market price】 Film: $1070 - $1095/ton (CFR Huangpu); Coating: $1280/ton (CFR Huangpu). 【PP US dollar market price】 Homopolymer: $900 - $965/ton (CFR Huangpu); Copolymer: $920 - $975/ton (CFR Nansha), down $20/ton; Transparent: $1000 - $1055/ton (CFR Huangpu); Pipe: $1160/ton (CFR Shanghai).

Origin Materials and Dutch packaging manufacturer Royal Hordijk Packaging have announced a strategic partnership to mass-produce polyethylene terephthalate (PET) bottlecaps, marking a significant step in advancing circular packaging solutions across the European market. California-based Origin Materials, a Nasdaq-listed technology company focused on the development of sustainable materials, will collaborate with Hordijk to operate high-speed production lines known as CapFormer at Hordijk’s facilities in the European Union. These production lines will convert PET sheet—extruded by Hordijk—into lightweight and tethered caps intended to support recyclability and compliance with EU single-use plastics regulations. “Hordijk combines expert manufacturing, a robust base of operations in Europe, and significant global reach,” said John Bissell, CEO of Origin Materials. “Further, Hordijk brings PET extruders and extrusion expertise to our operations that can drive capital cost efficiency for CapFormer lines. We look forward to producing billions of PET caps together and carrying packaging forward to its next evolution.” With over a century of experience in packaging innovation, the family-owned Hordijk Group serves clients in more than 25 countries across the food, personal care, pharmaceutical, and horticultural sectors. The company has invested significantly in sustainable materials and design, aligning with growing regulatory and market demands for mono-material packaging solutions. Rik Hennink, CEO of Hordijk, emphasized the alignment between the two companies’ objectives: “At Hordijk, we believe the future of packaging is circular, and we are committed to innovation and reducing environmental impact. Partnering with Origin to mass produce PET bottlecaps and investing in extrusion to scale production aligns with our mission and roadmap.” The initiative targets a global caps and closures market valued at over $65 billion, aiming to improve recyclability through material simplification and mechanical performance enhancements. PET caps, when tethered and mono-material, are positioned as a practical solution to upcoming regulatory requirements, particularly in the EU where tethered closures for single-use plastic bottles will become mandatory. Origin’s broader mission includes the transformation of carbon from renewable biomass into specialty materials used across packaging, textiles, automotive, and other sectors. Its patented biomass conversion platform underpins its material innovations, including PET caps and closures. The companies will jointly develop and operate production capabilities to address growing demand from brands seeking sustainable packaging that meets circular economy goals while maintaining shelf stability and performance.

A recent report by Cathay Futures, titled "2025 Semi-Annual Market Outlook for Staple Fiber and Bottle-Grade Chip Futures: Risk Resonance in Q3, Stabilization Possible in Q4," indicates that in the first half of 2025, the polyester industry chain experienced a "tale of two extremes": profits in the upstream PX and PTA segments continued to strengthen, while the downstream staple fiber and bottle-grade chip segments struggled under high operating rates, high inventory, and demand uncertainty, with processing fees compressed to historical lows. As the third quarter approaches, industry consensus is gradually pointing towards self-preservation through concentrated production cuts, which may become the only way out for the middle and lower streams. First Half-Year Review: Tariff Fluctuations and Volatile Market Movements From the perspective of price trends, short fiber experienced a rebound in January and February, supported by pre-Chinese New Year restocking and a rise in raw material prices. However, after the holiday, weak demand and fluctuating U.S. tariff policies in March caused short fiber prices to plummet rapidly. In April, the collapse of crude oil and PTA costs led to a simultaneous drop in short fiber prices. In May, with the easing of tariffs, market sentiment improved, and restocking drove a temporary rebound in prices. The trend of bottle-grade PET chips remained relatively firm. In January and February, production was reduced due to concentrated sales pressure during the off-season. After March, as spot supply tightened and exports remained strong, the processing fees for bottle-grade PET chips temporarily recovered. In April, prices fell due to a collapse in raw material costs, but the low prices led to significant stockpiling for export, driving up prices and the basis again by the end of April. In May, daily production increased by 25% year-on-year. As of May, the cumulative production of staple fiber reached 3.35 million tons, an increase of 5.9% year-on-year; the production of bottle-grade polyester increased by 11% year-on-year. Behind the fluctuations, there is a severe imbalance in industry profit distribution. Data shows that in the second quarter of 2025, the PX-naphtha price spread remained high at 700-800 USD/ton, while the cash flow margin for short fiber processing fees was compressed to 800-850 RMB/ton, and the bottle chip processing fees also fell to the lowest point in nearly five years. Cost Side and Industry Chain Transmission: Structural Pressure Emerging The naphtha market is experiencing "near-term looseness and long-term tightness," with cracking margins under pressure and low ethylene operating enthusiasm, leaving limited room for short-term price premiums. PX remains in a tight balance, with about 3 million tons of new capacity added throughout the year, mainly concentrated in Yulong Petrochemical's facilities. Maintenance in the second quarter supports prices, and the PX-MX spread remains at a high level. PTA will see new capacity additions of up to 11.6 million tons, with an annual growth rate of 9.9%, highlighting supply pressures. In the short term, inventory reduction relies on maintenance. If demand does not improve in the second half of the year, PTA may be forced to cut production. The concentration of profits in the PX and PTA segments leaves midstream and downstream enterprises "gasping for breath." If downstream demand fails to be unleashed, a negative feedback loop in the third quarter may propagate along the path of "polyester production cuts — PTA production cuts — PX weakening," leading to a unilateral decline in prices. Supply pattern: Limited new additions, increased inventory pressure due to high operating rates intensify contradictions. The new capacity for staple fiber throughout the year is only about 320,000 tons, an increase of 3.3%, which is far lower than that of filament and bottle-grade chips. However, high operating rates are a significant feature this year, with the operating rate maintained at 90%-95% from January to May. Inventory pressure has gradually accumulated, with cotton-type inventory reaching a maximum of 22 days, which, although lower than the 40-50 days for filament, is already at a historically high level. New bottle-grade chip capacity has been concentrated and realized, with Yizheng Chemical Fiber's 500,000 tons and Sanfangxiang's 1.5 million tons units coming online, increasing the industry's effective capacity by about 10%. In the second half of the year, Shandong Fuhai's 600,000 tons unit is planned to be implemented. Industry data shows that the operating rate of bottle-grade PET fluctuates significantly, ranging from a low of 50% in the off-season to a high of 94% in the peak season. With production running at high levels, social inventory is showing an accumulation trend. Demand pattern: Limited domestic demand support, consumption "increased volume but decreased price" Investment in the textile and apparel industry continues to expand, with fixed asset investment growth rates from January to April reaching 27.1% for the apparel sector and 13.5% for the textile sector, both exceeding the overall industry average of approximately 4%. However, end-consumer demand remains weak, with retail sales of clothing, footwear, and hats increasing by only 3.1% year-on-year from January to April, apparel and accessories profits declining by 12.7% year-on-year, and the consumer confidence index lingering at a low level. The downstream profit of the textile industry continues to be squeezed. Apart from restocking in May, the inventory of weaving raw materials remains at the lowest level in nearly five years. The long-term negative profit of yarn further weakens the willingness to restock. The demand for bottle flakes in beverage packaging shows a "peak season not strong" characteristic. From January to April, the production of soft drinks increased by 3% year-on-year, and retail sales increased by 0.3% year-on-year. However, the sales of sugar-free tea decreased by 3.2% year-on-year. Although sports drinks and plant-based drinks maintained double-digit growth (+12.4%, +11.7%), their combined market share was less than 15%. Edible oil packaging remains a necessity, with vegetable oil production increasing by 3.4% year-on-year from January to April. Exports remain the sole bright spot, but third-quarter concerns intensify. In the first half of the year, bottle-grade PET exports grew significantly, with a year-on-year increase of 27.3% from January to April, and short fiber exports increased by 8.5% year-on-year. However, the growth in exports is more due to low-price stockpiling and early fulfillment of tariffs, raising doubts about its sustainability. From May, freight rates on the US West Coast route have increased by 15%-20%. Coupled with the third-quarter China-US trade negotiations and global macroeconomic uncertainties, the pace of exports may slow down. Third Quarter Industry Logic: Production Cut Pressure Accelerates The processing fees for staple fiber and bottle-grade PET chips continue to operate around the cash flow cost margin. It is expected that in the third quarter, the industry will alleviate inventory pressure through concentrated production cuts, especially for bottle-grade PET chips. To balance supply and demand, the production cut needs to reach more than 10%. However, considering the weak demand during the off-season, the duration of the production cut may be limited. After the concentrated production cut, the operating rate will still rebound. Outlook for the Fourth Quarter: Beware of Volatility, Focus on Demand Recovery In the event of a deep negative feedback loop in the third quarter, combined with the digestion of external risks, the industry is expected to achieve a stage of stabilization in the fourth quarter. However, this process depends on the improvement of end-consumer demand and a rebound in export demand. Processing fees at extremely low levels have the potential for technical recovery, but sustained momentum will still depend on downstream forces. Risks to be aware of include: The first is the policy uncertainty brought about by the U.S. tariff negotiations and the expiration of the debt ceiling in the third quarter. The second is the impact of significant fluctuations in U.S. shipping costs on the export pace. 3. The increase in production by OPEC+ and the fluctuations in crude oil prices have impacted the cost side.

Over the past three years, Russia’s dairy packaging industry has undergone a comprehensive transformation, shifting from heavy reliance on Western imports to large-scale promotion of domestic production. This process not only demonstrates the industry's adaptability in the face of geopolitical shocks, but also reflects the global trend of supply chain restructuring. Image source:Eight Delicacies Crossing the Sea   Sanctions Impact: Supply Chain Disruptions Expose Dependency Risks Since 2022, due to geopolitical factors, Western countries have imposed severe sanctions on Russia, leading to disruptions in the supply chains of various industries, with dairy product packaging being one of the hardest hit. Before the sanctions, about 50% of Russia's packaging materials were dependent on imports, including laminated cardboard, polymer films, adhesives, inks, and aseptic packaging technologies. These are crucial for extending the shelf life of dairy products and ensuring food safety. Additionally, key machinery such as filling lines and sealing equipment have long been dominated by European brands, and limitations on spare parts and technical support have caused a 10%-15% increase in downtime, significantly reducing production efficiency. Industry research shows that by the end of 2022, the raw material inventory of most dairy processing companies could only support 2-3 months of production. The market experienced a temporary shortage of packaging supplies, and some small to medium-sized packaging companies directly halted production and exited the market. This high dependence on imports has become the "Achilles' heel" of industry security. Response Measures: "Dual-Drive" of Domestic Substitution and Diversified Supply In times of crisis, the Russian government swiftly launched the "import substitution + supply diversification" strategy, advancing four core initiatives through financial support, technological collaboration, and industry linkage. The localization process accelerates: Domestic companies are increasing investment in key material sectors such as coated paperboard and polymer films, promoting upgrades in coating and compounding processes to ensure that products comply with dairy packaging safety standards. In 2024, the production of domestically produced coated paperboard will increase by more than 40% year-on-year, basically meeting the needs of mainstream dairy products. Supply Chain Diversification: China, India, Turkey, and the UAE have become major alternative suppliers. Data shows that in 2023, the proportion of high-barrier cardboard imported by Russia from China increased to over 50%, alleviating short-term supply pressure. Inventory Management Upgrade: Companies have generally extended the safety stock cycle for key packaging materials from 30 days to 90 days, with some leading enterprises even establishing strategic reserve systems to hedge against potential risks. Equipment Maintenance and Domestic Innovation Breakthrough: The industry is witnessing a trend of independently developing mechanical components and retrofitting old equipment. In 2024, the domestic penetration rate of mid- and low-end filling lines reached 40%, which has to some extent reduced the risk of downtime. Through these measures, the Russian dairy packaging industry has stabilized within 18 months. By 2024, over 90% of mainstream packaging is either domestically produced or has replaced imports, but the domestication of high-tech aseptic cartons still faces technical bottlenecks. Current situation: Supply security has recovered, but there is dual pressure from costs and technology. As of mid-2025, the overall supply chain for dairy packaging in Russia has recovered, and production continuity is assured. However, the industry still faces three major challenges: The gap in high-end technology has not been filled: Aseptic packaging with multi-layer composite structures and high barrier performance is still highly dependent on imports. Domestic products still lag behind international standards in terms of oxygen resistance and pressure resistance. Rising costs push up end prices: Although localization has improved security, due to insufficient economies of scale and investment in technological upgrades, packaging material costs have increased by approximately 25%-35% compared to 2022, directly affecting the retail price of dairy products. Increasing pressure for environmental transformation: Consumers' demand for recyclable and biodegradable packaging is continuously rising, but due to technological and investment constraints, Russia's progress in sustainable packaging research and development is slow, still lagging behind the environmental standards of Europe, the United States, and China. International Comparison: Global Market Size and Technology Landscape According to industry data, the global dairy packaging market size in 2024 is approximately 60 billion USD, and it is expected to maintain a compound annual growth rate of 4%-5% until 2030. The growth momentum mainly comes from the Asia-Pacific and Latin American markets. Companies in the United States and Europe lead in high-end aseptic packaging and smart packaging fields. Representative companies include Tetra Pak (Switzerland), SIG (Switzerland), and Elopak (Norway). These companies hold a technological advantage in paper-based aseptic packaging and green material research and development, collectively accounting for over 50% of the global market share. In contrast, China has rapidly improved its packaging industry chain over the past five years, particularly in polymer films, food safety coatings, and degradable materials, achieving international competitiveness. In 2024, dairy packaging exports increased by over 20% year-on-year, becoming an important alternative sourcing option for Russia. The Indian market, on the other hand, has risen with cost advantages and mid-to-low-end packaging capacity, becoming a flexible supplement to the global supply chain. Russia's strategy is representative in the international context: achieving supply security through localization and diversified procurement. However, high-tech dependency still exists, which aligns with the highly segmented global supply chain, where technological innovation is concentrated in Europe and the United States, cost advantages are in Asia, and resource security is a priority for Middle Eastern and CIS countries. Policy and Industrial Chain Rebalancing The Russian government continues to list the dairy industry as a core area of food security, promoting industrial upgrading through financial subsidies, credit incentives, and import substitution projects. Meanwhile, the standardization and certification system of the packaging industry is gradually improving to meet domestic quality and export market requirements. The synergy between upstream raw material companies and downstream processing plants has been enhanced, forming a relatively stable internal circulation structure. However, achieving independence in high-end equipment and environmentally friendly materials still requires technology introduction and capital investment. The three-year adjustment of the Russian dairy packaging industry has completed the transition from "crisis" to "stability." Although there are still shortcomings in high-end technology and green initiatives, this process has validated the importance of localization of the industrial chain and flexible supply chain management amid geopolitical uncertainties. For the global market, the Russian experience is not only a case of dealing with sanctions but also a microcosm of the global manufacturing industry's search for a balance between supply chain security and open cooperation.

Completely free of preservatives, it stays fresh for 18 months at room temperature, and can be reheated in 3 minutes to restore a dine-in quality taste. Tetra Pak’s meal freshness packaging may trigger a new revolution in the prepared food industry. Recently, Shanghai Maling, a leading brand of canned food in China, officially announced the nationwide launch of the "Dafan" Fresh-Lock Meal Series, the country's first Tetra Pak® fresh-lock meal package. The newly launched "Dafan" fresh-lock vegetable series features three products: Taiwanese braised pork, Japanese curry beef, and Shanghai-style borscht. These products will be available simultaneously across major e-commerce platforms and offline supermarkets through an omnichannel coverage strategy. Shanghai Maling, a member of Bright Food Group (600073.SH), is a leading brand in China's canned food industry. This time, in order to achieve full control over the entire industry chain "from pasture to plate," Maling has specially launched Tetra Pak Fresh-Locked Vegetables. It is reported that the Tetra Recart food freshness pack is composed of six layers of materials, which can block oxygen, light, and moisture. Without any added preservatives, it can keep the nutrition and safety of the food for a long time, while also fully preserving the flavor, color, and texture of the ingredients. In addition, the packaging’s features of ambient storage and resealable convenience allow “Da Fan” Fresh-Locked Vegetables to be widely used in various scenarios. With its “ready-to-eat” approach, it truly delivers the taste of home in just three minutes. "Dafan" uses Tetra Recart food preservation packages, which also have excellent environmental performance. Tetra Recart packages can keep food fresh for 18 months at room temperature and restore the taste of freshly cooked meals in just 3 minutes. In terms of carbon emissions, the renewable materials used in Tetra Recart packaging account for 71%, and compared to glass bottles and canned packaging, its carbon emissions can be reduced by up to 85%. Currently, in the fast-paced lifestyle and with the continuous rise of the "lazy economy," the demand for convenience foods is booming. However, the consumer demand for "convenience without compromise, and deliciousness without concession" will continue to drive packaging innovation.

According to the US market research publisher LP Information, the global Mono-Oriented Polypropylene (MOPP) film market is expected to reach USD 520 million by 2031, with a compound annual growth rate (CAGR) of 5.6% in the coming years. Figure 00001. Global Market Size of Monoaxially Oriented Polypropylene (MOPP) Film Figure 00002. Top 6 Global Manufacturers of Mono-Oriented Polypropylene (MOPP) Films and Their Market Shares (Based on 2024 Survey Data) Major global manufacturers of mono-oriented polypropylene (MOPP) films include NOWOFOL, Lenzing Plastics, Trico Specialty Films, Profol GmbH, Futamura Chemical, and Yangzhou Sheng Zhibao New Materials. In 2024, the top five manufacturers worldwide accounted for approximately 59.0% of the market share. Figure 00003. Global Market Size of Mono-Oriented Polypropylene (MOPP) Films, by Product Type, with 30–70μm Segment Dominating In terms of product type, the 30–70μm segment is currently the main product category, accounting for approximately 55.8% of the market share. According to Figure 00004, the global market size of mono-oriented polypropylene (MOPP) films is segmented by application, with food & consumer goods packaging being the primary source of demand, accounting for approximately 41.1% of the share. In terms of product application, food and daily chemical packaging is currently the primary source of demand, accounting for approximately 41.1% of the share. Figure 00005. Global Mono-oriented Polypropylene (MOPP) Film Scale, Major Regional Share Figure 00006. Global Major Market Single-Oriented Polypropylene (MOPP) Film Scale Main driving factors: The mono-oriented polypropylene (MOPP) film industry is ushering in structural growth opportunities, especially against the backdrop of rising global demand for green packaging and functional materials. With increasing requirements for high-strength, easy-to-process, and environmentally friendly film materials in downstream sectors such as food packaging, labeling, home appliance protection, and industrial consumables, MOPP films are gradually replacing traditional materials in specific applications due to their superior longitudinal tensile strength, excellent stiffness, and good printability. The global market is transitioning from stability to growth, particularly in emerging regions like the Asia-Pacific, where MOPP film consumption is rapidly expanding and becoming a key driver of industry growth. Currently, single-material plastic packaging films worldwide mainly focus on polyethylene and polypropylene. In developed regions such as Europe and the United States, concerns about recycling efficiency and environmental impact have placed policy and market pressures on traditional multilayer composite materials. In contrast, polypropylene-based single-material packaging, such as MOPP films, offers outstanding environmental advantages. Its simple structure and clear recycling pathways promote effective waste reutilization and drive the circular economy, significantly reducing the carbon footprint. It is a key direction for the future upgrade of sustainable packaging materials. The development of the MOPP film market is being accelerated by policies and regulations. The European Union has introduced a revision of the Packaging and Packaging Waste Regulation (PPWR), and China is continuously advancing its action plan for managing plastic pollution. Both are advocating for packaging materials to be more environmentally friendly, functional, and easy to recycle. In this trend, MOPP films, which offer higher mechanical performance and environmental adaptability, are becoming a potential alternative in many brands' green material strategies. With improvements in process technology, optimization of raw materials, and expansion of application fields, MOPP films are expected to achieve technological breakthroughs, expand their market share in flexible packaging and industrial films, and enter a period of rapid growth. Main obstacles: One of the main challenges faced in the manufacturing of MOPP films is the high complexity of process control. Machine Direction Orientation (MDO) can significantly improve the film’s barrier properties, rigidity, flatness, and tensile strength, but it is very difficult to master in actual operation. For example, in multilayer films containing nylon or EVOH, although stretching can enhance barrier performance, it can also make the material brittle. Therefore, without precise control of process parameters such as preheating temperature, stretching ratio, and annealing position, product instability or deterioration of physical properties is highly likely to occur. This demands a very high level of technical capability, raising the industry’s entry barriers and making it difficult for small and medium-sized enterprises to enter the high-end market. The product development cycle is long and the cost of trial and error is high. Since the structure and formulation design of MOPP films must be highly matched with the final application, even slight mismatches can result in products failing to meet strength, adhesion, or processing requirements. Many complex MDO products (such as multilayer functional films) are not only difficult to design, but also prone to issues such as wrinkling, film breakage, and edge warping during mass production. This requires prolonged and repeated adjustment of equipment parameters, extending the time to market and increasing both R&D and raw material consumption costs. Adhesive tapes produced with MOPP films may also experience problems such as delamination and insufficient adhesion. In addition to technical and development challenges, supply chain and transportation risks are also external factors that cannot be overlooked. The MOPP film market is concentrated in Europe and the United States, but its customers are distributed globally, and the products are sensitive to transportation conditions. During periods of logistical constraints (such as the COVID-19 pandemic), delays in long-distance transportation will directly affect the normal use by downstream customers, especially in industries such as home appliances and food packaging, which have extremely high requirements for delivery stability. Furthermore, manufacturers being far from the end markets results in long feedback cycles, which is unfavorable for rapid iteration and optimization of product performance, thus placing them at a disadvantage in fierce competition. Industry Development Opportunities In the coming years, MOPP film is expected to attract more attention under the trend of single-material soft packaging. With the rising global demand for sustainable materials, MOPP film is gradually becoming a candidate for environmentally friendly packaging alternatives due to its good recyclability and simple structure. Particularly in niche applications such as labels, tapes, and protective films for electronic components, its high strength and excellent processing performance make it highly competitive. Meanwhile, with the application of new technologies such as anti-static, low-shrinkage, and high-transparency modifications, the performance of MOPP film will continue to improve, meeting more high-end demands. The global market is also showing a trend of regional focus gradually shifting towards the Asia-Pacific region, particularly China. Although European and American manufacturers currently still dominate a large portion of the high-end market, the expansion rate of China's production capacity is significant. If domestic companies can overcome key technical bottlenecks, such as eliminating shrinkage and adhesion, and improving thermal stability and antistatic performance, they are expected to make breakthroughs in the mid-to-high-end industrial film market, further promoting the localization of MOPP film.

International News Highlights:   Policy News-European Carmakers Welcome, and Worry About, U.S. Tariff Deal Investment News-Adnoc takeover of Covestro hit by EU foreign subsidies probe Automotive News-Toyota Tsusho's ASR-derived recycled plastic adopted for Toyota's front fender Packaging News-Kreyenborg’s IR-Clean Technology decontaminates PET flake Macro News-UBS Asks Advisors to Reduce Sales of Complex Foreign Exchange Products Price Information-CNY/USD Central Parity Rate Reported at 7.1511, Down 44 Points   The Details of International News：   1. European Carmakers Welcome, and Worry About, U.S. Tariff Deal Europe’s automakers expressed a mixed sense of relief and wariness the day after a trade agreement was reached between the United States and the European Union on Sunday. The companies welcomed a reduction in U.S. tariffs on imported cars and parts, to 15 percent from 25 percent, but warned that even a lower levy would hurt their businesses. After an initial rally, major European carmakers’ shares turned sharply lower on Monday. Volkswagen, Mercedes-Benz and BMW all fell more than 3 percent. Porsche and Stellantis, which owns Chrysler and Jeep as well as the European brands Peugeot and Fiat, dropped more than 4 percent. 2. Toyota Tsusho's ASR-derived recycled plastic adopted for Toyota's front fender Toyota Tsusho Corporation announced that recycled plastic derived from ASR (Automotive Shredder Residue) manufactured by its Group company K.K. Planic ("Planic") has been adopted for the first time in a Toyota vehicle in Japan for the front fender seal of the Crown "Sport." As it is difficult to sort collected plastics that include ASR-derived plastics by material, it is hard to conduct Car to Car recycling, which requires high quality, so the plastics have mainly been incinerated (thermal recycling). Amid these circumstances, Planic has become the first company in Japan to introduce advanced gravity separation technology and equipment, which has been put to practical use in Europe, enabling the manufacture of high-quality recycled plastic and Car to Car recycling. This has become a major strength of the company. 3. Adnoc takeover of Covestro hit by EU foreign subsidies probe The proposed €14.7 billion takeover by Abu Dhabi National Oil Co. (Adnoc) of Covestro AG has been hit by a new in-depth EU probe under foreign subsidies regulations just two months after clearing a previous EU antitrust investigation.   4. Benvic redesigns plastics for sustainable future Global manufacturing faces an unpredictable and uncertain future: Supply chains everywhere face disruption from a multitude of causes and from the growing pains of the new circular economy.The constrained economic outlook has made all companies adopt a more cautious and balanced business outlook - differentiating products and product costs for a variety of needs in a much more fragmented marketplace 5. Kreyenborg’s IR-Clean Technology decontaminates PET flake The European Food Safety Authority (EFSA) has issued a positive "Scientific Opinion" to Germany-based Kreyenborg under EU 2022/1616 for its infrared technology, IR-Clean, that decontaminates recycled polyethylene terephthalate (PET) flakes so they can be used to produce food packaging. With EFSA’s approval of its process, Kreyenborg's IR-Clean system will be assigned a unique recycling authorization number (RAN) and listed in a public register, the company says. Macro Market Information:   【UBS Asks Advisors to Reduce Sales of Complex Foreign Exchange Products】The Financial Times quoted informed sources as saying that UBS has asked advisors to stop promoting structured foreign exchange products called Range Target Profit Forwards (RTPFs) to many clients. After US President Trump announced tariff hikes in April, which led to sharp fluctuations in the US dollar, some clients suffered losses, and the bank has paid more than 100 "goodwill" payments to clients. 【Trump Says US Will Attack Again if Iran Restarts Nuclear Program】US President Trump told the media in Scotland on July 28 that Iran has sent unfriendly signals, and if Iran restarts its nuclear program, the US will launch another attack to destroy Iran's nuclear facilities in a short time. After the US struck three Iranian nuclear facilities in June this year, Iranian officials have repeatedly emphasized that they will not abandon the uranium enrichment program. Iranian Foreign Minister Araghchi posted on social media on July 28 that if the US and Israel carry out another aggression against Iran, Iran will take firm and powerful retaliatory actions. 【US Trade Representative Says More Trade Negotiations with India Needed】With only a few days left until the August 1 deadline for tariff hikes, US Trade Representative Greer said that more negotiations with India on the trade agreement are still needed. Greer said in an interview on Monday that the US side needs to conduct more negotiations to assess the Indian government's determination to reach a trade agreement. He admitted that he had previously suggested that an agreement with New Delhi might be reached soon, but he emphasized that India's long-standing policy of protecting its domestic market means that reducing trade barriers will represent a major policy shift. 【Hong Kong Monetary Authority to Hold Technical Briefing on Stablecoin Issuer Regulatory Regime Today】Hong Kong's "Stablecoin Regulation" will be formally implemented on August 1. On July 29, the Hong Kong Monetary Authority (HKMA) announced that it will hold a technical briefing on the stablecoin issuer regulatory regime at 4:30 pm. It is reported that the technical briefing will be hosted by senior officials of the HKMA, including Deputy Chief Executive Chan Wai-man, Assistant Chief Executive Chan King-hung in charge of regulations and anti-money laundering, Assistant Chief Executive Ho Hon-kit in charge of monetary management, and Head of Digital Finance Ho Wang-che. 【Thai Finance Minister Says: Thailand Is Very Close to Reaching a Trade Agreement with the US】 Thai Finance Minister Pichai Chunhavajira: The US will resume tariff negotiations with Thailand. Thailand is very close to reaching a trade agreement with the US and is expected to reach the main part of the tariff agreement. The tariff rates between Thailand and the US are likely to be lower than 36%. The tariff announcement on Thailand will be issued by the US. 【Stellantis' First-Half Adjusted Operating Income Below Estimates】 Stellantis' first-half adjusted operating income was €540 million, a year-on-year decrease of 94%, compared with the estimate of €1.33 billion. The first-half adjusted operating margin was 0.7%, compared with 10% in the same period last year and the estimate of 1.97%. The first-half net loss was €2.26 billion, compared with a profit of €5.65 billion in the same period last year and the estimated loss of €855.3 million. The first-half net revenue was €74.26 billion, a year-on-year decrease of 13%, compared with the estimate of €74.96 billion.   Price Information:   【CNY/USD Central Parity Rate】 The CNY/USD central parity rate was reported at 7.1511, down 44 points; the previous session's central parity rate was 7.1467, the previous session's official closing price was 7.1729, and the previous night session's closing price was 7.1787. 【Upstream Raw Material USD Market Prices】 Ethylene Asia: CFR Northeast Asia $820/ton; CFR Southeast Asia $830/ton. Propylene Northeast Asia: FOB Korea average $740/ton; CFR China average $770/ton. North Asia frozen cargo CIF price: propane $507-$509/ton; butane $487-$489/ton. South China frozen cargo August CIF price: propane $536-$546/ton; butane $521-$531/ton. Taiwan region frozen cargo CIF price: propane $507-$509/ton; butane $487-$489/ton. 【LLDPE USD Market Prices】 Film: $860-$920/ton (CFR Huangpu); Injection molding: $950/ton (CFR Dongguan); 【HDPE USD Market Prices】 Film: $910-$920/ton (CFR Huangpu); Blow molding: $855-$865/ton (CFR Huangpu); Pipe: $1030/ton (CFR Huangpu), down $10/ton; 【LDPE USD Market Prices】 Film: $1070-$1095/ton (CFR Huangpu), down $5/ton; Coating: $1280/ton (CFR Huangpu), down $70/ton; 【PP USD Market Prices】 Homopolymer: $925-$965/ton (CFR Huangpu), up $10/ton; Copolymer: $940-$950/ton (CFR Nansha); Film grade: $1030/ton (CFR Nansha); Transparent grade: $1000-$1055/ton (CFR Huangpu), down $10/ton; Pipe: $1160/ton (CFR Shanghai).

The European Food Safety Authority (EFSA) has issued a positive scientific opinion on the infrared technology IR-Clean developed by the German company Kreyenborg, in accordance with EU Regulation 2022/1616. This technology can decontaminate recycled polyethylene terephthalate (PET) flakes, making them suitable for use in the production of food packaging. Kreyenborg stated that with EFSA’s approval of its process, its IR-Clean system will be assigned a unique Recycling Authorization Number (RAN) and included in the public register. According to Kreyenborg, multiple IR-Clean processes have received positive feedback from customers under the old EC 282/2008 regulation. The company also added that under the new EU 2022/1616 regulation, the approval procedures for Kreyenborg and its packaging industry customers will be streamlined and simplified. After evaluating the challenge test data, the EFSA Panel concluded that there are no safety concerns regarding the recycled PET obtained through the IR-Clean process. Therefore, it can be reused at up to 100% for the manufacture of materials and articles intended to come into direct contact with all types of food, stored at room temperature or below. However, the input material must consist of post-consumer PET flakes originating from packaging that complies with EU legislation on food contact materials, which have been washed and dried, and the proportion of PET from non-food consumer applications must not exceed 5%, provided that the process is operated under the same stringent conditions as the decontamination process evaluated by EFSA in the “challenge test.” In the process evaluated by EFSA for the Kreyenborg company, two main steps were assessed: the decontamination of PET flakes in the infrared dryer (IRD), and the subsequent treatment in the finishing unit. Marcus Vogt, Technical Sales Manager of the Plastics Division, stated: "These two steps are crucial to the decontamination efficiency of our plant." He summarized the long and complex measurement work carried out as part of various challenge tests prior to the EFSA evaluation. Vogt helped initiate the application and accompanied the process throughout the more than six-year approval procedure, which not only had to comply with EU standards but also required various approvals in accordance with the regulations of the U.S. Food and Drug Administration (FDA).

Amidst the global wave of sustainable development, Hefei Hengxin Life Technology Co., Ltd. (hereinafter referred to as "Hengxin Life"), which focuses on the field of green degradable products, is accelerating its strategic layout. During July, the company announced a series of major developments, including plans to invest over 500 million yuan to build a new production base in Hefei. Previously, it acquired land for its Shanghai subsidiary for less than 60 million yuan and actively participated in equity investments. Meanwhile, Hengxin Life also secured a large order from China Southern Airlines, demonstrating its strong capabilities and broad prospects in the eco-friendly packaging sector. Major Expansion: Establishing a Green Biodegradable Products Manufacturing Base in Hefei On the evening of July 27, 2025, Hengxin Life released a noteworthy announcement titled "Announcement on the Proposed Purchase of Land Use Rights and Investment in Construction Projects." The announcement disclosed that on July 26, the company held the seventh meeting of its second board of directors, at which the "Proposal on the Proposed Purchase of Land Use Rights and Investment in Construction Projects" was reviewed and unanimously approved. According to the proposal, Hengxin Life and its subsidiaries plan to invest in the construction of a project in Changfeng County, Hefei City, Anhui Province, using their own funds, bank loans, or other financing methods.A brand-new production base for green biodegradable products。The total investment of the project is expected not to exceed RMB 505 million, which includes the land use rights transfer fee.The company stated that the final total investment of the project will be flexibly adjusted based on actual scale layout, project land conditions, and environmental capacity factors. Hengxin Life pointed out that the purchase of land use rights and investment in the construction of a new production base is a necessary move to meet the company's actual business development needs. This initiative will greatly help the company improve its industrial layout, optimize its product structure, and further expand its business scale, in order to better meet the growing customer demand for green and biodegradable products. In addition, the construction of the new base will effectively expand the production capacity of the company’s advantageous products, thereby comprehensively enhancing the company’s overall strength. This is highly consistent with the company’s established strategic planning and business development direction, and will have a positive and far-reaching impact on the company’s future development. It is worth mentioning that Hengxin Life believes the implementation of this investment project will also help the company attract and cultivate more professional technical talents, further enhance its level and innovation capability in the field of technological research and development, and lay a solid foundation for the company’s sustainable development in the future. Previous Arrangement: The Shanghai subsidiary bid for land to expand packaging product manufacturing. On July 18, Hengxin Life released the "Progress Announcement on the Acquisition of Land Use Rights by a Controlling Subsidiary Through Auction and External Investment," disclosing another significant layout in Shanghai. The announcement traces back to the first board of directors' ninth meeting held on March 23, 2023, and the 2022 annual general meeting held on April 13 of the same year. At that time, the meetings reviewed and approved the "Proposal on the Participation of the Company's Subsidiary Shanghai Yike Environmental Protection Technology Co., Ltd. in the Land Auction." According to the proposal, Hengxin Life's subsidiary, Shanghai Yike Environmental Technology Co., Ltd., plans to bid for a plot of land approximately 53 mu in size in Zhujing Town, Jinshan District, Shanghai. The expected transaction amount will not exceed RMB 60 million. After successfully obtaining the land use rights, the plot is planned to be used for the construction of a packaging products manufacturing project, with a total investment not exceeding RMB 500 million. The company also authorizes the management team of Shanghai Yike Environmental Technology Co., Ltd. to communicate with the local government on the above matters and to handle the necessary procedures such as project filing, signing of relevant agreements, land bidding, and the construction and implementation of the project. Recently, the company's holding subsidiary, Shanghai Eko Environmental Technology Co., Ltd., successfully won the state-owned construction land use rights for the plot numbered "Jinshan District JSS2-0401 Unit 11-12 Plot (CB_201207005)" offered by the Shanghai Jinshan District Planning and Natural Resources Bureau. They signed the "Shanghai State-Owned Construction Land Use Rights Transfer Contract" and obtained the real estate ownership certificate.Hengxin Life stated that the successful acquisition of the land use rights for the aforementioned plot in this auction is primarily to meet the construction needs of the packaging products manufacturing project. This will facilitate the smooth progress and implementation of the project, further improve the company’s industrial layout, thereby ensuring the company’s continuous and stable development. It fully aligns with the company’s long-term development strategy and also provides a solid guarantee for the company’s sustainable development in the future. Diversified Investment: Partnering with Professional Institutions to Strategically Allocate Equity Investments In addition to direct investments in the production base, Hengxin Life also disclosed its latest developments in the investment field this month. According to the company's strategic planning needs, to further expand its business areas and better leverage the expertise and resource advantages of professional investment institutions, Hengxin Life intends to collaborate with Beijing Fangyuan Jinding Investment Management Co., Ltd. (referred to as "Beijing Jinding", which is also the fund manager, general partner, and executive affairs partner) and other limited partners to jointly make investments. Hengxin Life Plan, as a limited partner, subscribed to the fund shares of Gongqingcheng Jinchi with its own funds amounting to RMB 10 million. It is understood that the investment direction of this partnership will focus on a single investment target, namely, achieving the capital appreciation of the partnership through equity investment in Shandong Tailv Yuan Food Technology Co., Ltd. Hengxin Life believes that the company's joint investment with professional investment institutions can effectively leverage the resources and advantages of these institutions in the field of equity investment, while ensuring the stable development of its main business. This will allow the company to venture into investment business, improve the efficiency of its capital operations, and further enhance its overall competitiveness and profitability. Outstanding Performance and Industry Strength: China Southern Airlines’ Large Orders and the Reputation as a High-Tech Enterprise Behind this series of strategic layouts is Hengxin Life's strong performance and profound industry strength. According to Qichacha data, Hengxin Life officially announced on July 28, 2025, that it won the bid for the procurement project of China Southern Airlines Jiayuan (Guangzhou) Aviation Supplies Co., Ltd., with a bid amount as high as 39.457 million yuan, which is undoubtedly an important milestone in its business development. Financial data shows that Hengxin Life achieved an operating income of 1.594 billion yuan in 2024, with a year-on-year growth rate of 11.86%. Among its main product composition, degradable products accounted for as much as 54.71%, non-degradable products accounted for 43.26%, and other businesses accounted for 2.03%, highlighting its prominent advantage in the environmental protection product sector. During the same period, the net profit attributable to the parent company's shareholders was 220 million yuan, a year-on-year increase of 2.82%, and the return on equity reached 23.54%. In the first quarter of 2025, the company's performance continued to maintain rapid growth, with operating income of 419 million yuan, a year-on-year increase of 24.18%; net profit attributable to the parent company's shareholders was 82 million yuan, a substantial year-on-year increase of 79.79%. As a high-tech enterprise focused on the research, development, production, and sales of paper and plastic tableware, Hengxin Life possesses the full process capabilities from product design to production. Its products widely cover various consumer fields such as fast food, takeout, and beverages, and are exported to many countries and regions in Asia, North America, Oceania, and Europe, demonstrating its strong global layout capability. In the field of biodegradable catering utensils, Hengxin Life holds a significant advantage. The company has been listed as one of the "Top Ten Degradable Plastic Enterprises in China's Light Industry" for six consecutive years and has been awarded numerous honors such as the national-level "Little Giant" enterprise specializing in niche markets, and the champion enterprise of Anhui Province specialized in niche markets. In addition, several of the company's products have received national green design product certification, highlighting its leading position in environmental technology and product innovation. As a vice-chairman unit of the Degradable Plastics Professional Committee of the China Plastics Processing Industry Association, Hengxin Life has led or participated in the formulation of several national standards, demonstrating its strong technical strength and industry influence. Hefei Hengxin Life's recent series of actions undoubtedly outline its clear and proactive development blueprint. Against the backdrop of environmental protection and sustainable development becoming a global consensus, Hengxin Life aligns with the pulse of the times, striving to dominate the promising market of green degradable products through multidimensional planning. The company is accelerating the construction of its comprehensive competitive advantage in the field of green degradable products through a dual-driven model of "industry + investment." Supported by national policies and driven by market demand, this "specialized, refined, and innovative" small giant is expected to achieve an even more brilliant future in the broad field of sustainable packaging. Its series of well-organized strategic deployments is a vivid example of how excellent Chinese manufacturing enterprises actively respond to challenges and seize opportunities amid the global wave of green transformation.

International News Guide :   Raw Material News - Breaking! Mitsui Chemicals TDI Plant Suffers Chlorine Gas Leak! Automotive News - Tesla Plans to Launch Human-Driven Ride-Hailing Service in San Francisco Bay Area Packaging News -INTEPLAST:US Film Maker Acquires German Competitor Perga Medical News – Colorcon Opens New Film-Coating Manufacturing Plant in Malaysia Recycling News -Vanden Launches Catalogue for Recycled PET Resins & Flake Macro  News -U.S. and EU Reach New Trade Agreement Price information - The central parity rate of RMB against USD is quoted at 7.1467, down 48 points.   The following are details of international news:  1. 99% of Indian Exports to UK to Achieve Zero Tariffs! Recently, India and the UK signed a free trade agreement. This is not only India’s first major bilateral trade agreement with a developed economy in over a decade but also one of the largest agreements since the UK’s “Brexit”. The UK government stated in a declaration that the agreement will reduce India’s average tariff rate on UK goods from 15% to 3%. Under the agreement, 99% of Indian exports to the UK will achieve zero tariffs; 90% of UK exports to India will see tariff reductions, and 85% of goods will achieve zero tariffs within 10 years. According to the agreement’s goals, India and the UK aim to double bilateral trade to $120 billion by 2030 and increase it by an additional £25.5 billion by 2040. The agreement has been approved by India’s Cabinet and will now enter the UK Parliament’s approval process, with completion of respective domestic ratification procedures expected within a year. 2. Breaking! Mitsui Chemicals TDI Plant Suffers Chlorine Gas Leak!Around 6:10 p.m. on July 27, 2025, passersby near Hashiguchi-cho, Omuta City, Fukuoka Prefecture, Japan, called 110 after smelling a sulfur-like odor. An investigation revealed the odor originated from a chlorine-based gas leak at Mitsui Chemicals’ Omuta Plant (which operates a 50,000-tonne/year TDI facility) located approximately 1 km east of the reporting location. Previously, the Omuta Plant operated a 120,000-tonne/year TDI facility, but just before the accident, it had undergone maintenance and reduced capacity to 50,000-tonne/year. According to notifications from the plant and local fire departments, the accident caused health issues for multiple people outside the factory premises. 3. INTEPLAST:US Film Maker Acquires German Competitor Perga Taking its first step into the European market, US film manufacturer Inteplast said it is acquiring its smaller competitor Perga from investment firm Serafin. Financial details of the transaction were not disclosed.Once the purchase is complete, Perga’s production facility at Walldürn will be Inteplast’s sixth plant within its Engineered Films division. According to MD Fabian Wilhelms, Perga produces monomaterial and coextruded films as well as Pergafilm- and Allfolin-branded packaging, primarily based on HDPE and LDPE. Photo: Perga 4. H&S Partners with Ikano Industry to Launch Second Polyurethane Foam Recycling Plant in Mexico H&S Anlagentechnik recently successfully commissioned a new polyurethane (PU) recycling plant in Ramos Arizpe, Mexico, marking a significant milestone in sustainable polyurethane processing in Latin America. Operated by Ikano Industry’s Mexican subsidiary, the plant is the second collaborative project under their long-term partnership. 5. Vanden Launches Catalogue for Recycled PET Resins & Flake Plastics recycler Vanden Global has launched a new PET Recycled Resins & Flakes Catalogue, which it says offers manufacturers secure access to high-quality recycled polyethylene terephthalate (rPET) materials.“As demand intensifies for food-grade rPET and technically verified recycled content, Vanden’s latest catalogue showcases a full range of EFSA/FDA and RecyClass certified flakes and granules, alongside tailormade feedstock solutions,” the United Kingdom-based company says, adding that the launch reinforces its ability to deliver consistent volumes through its global reach, local expertise and in-house logistics network. 6. Colorcon opens new film-coating manufacturing plant in Malaysia  Colorcon, Inc. (Harleysville, Pa.), a manufacturer of of filColorcon Opens New Film-Coating Manufacturing Plant in Malaysia m coating systems, specialty excipients, controlled release formulations and controlled atmosphere packaging for the pharmaceutical and nutraceutical industries, announced the grand opening of a new, state-of-the-art film-coating manufacturing facility in Johor, Malysia. The 200,000 square-foot facility will immediately employ 30 people and will serve as the production hub for film coatings in the Asia Pacific region. Designed with cutting-edge technology and energy-efficient systems, the new plant reinforces Colorcon’s dedication to industry innovation, superior quality, regulatory leadership and environmental stewardship. 7. Tesla Plans to Launch Human-Driven Ride-Hailing Service in San Francisco Bay AreaCalifornia regulators revealed that U.S. electric vehicle manufacturer Tesla plans to launch a ride-hailing service operated by human drivers for specific groups in the San Francisco Bay Area, rather than the previously reported autonomous taxi (robotaxi) service. Model Y; Image source: Tesla   Overseas Macro Updates：   U.S. and EU Reach New Trade Agreement​ On July 27, US President Donald Trump and European Commission President Ursula von der Leyen jointly announced a new trade agreement between the US and the EU at the Turnberry Golf Course in South Ayrshire, Scotland. Following an informal meeting with von der Leyen, Trump revealed key details of the deal, including: The US will impose a ​​15% tariff​​ on EU exports to America. The EU will increase investments in the US by ​​$600 billion​​. The EU will purchase ​​$750 billion worth of US energy products​​. The agreement marks a significant step in reshaping transatlantic trade relations. South Korea Proposes “MASGA” Shipbuilding Project to the U.S. According to Yonhap News Agency, South Korea has proposed a multi-trillion-won “MASGA” shipbuilding cooperation project to the U.S. Canalys: Mainland China Smartphone Market Down 4% YoY in Q2 According to the latest research from Canalys, the mainland China smartphone market fell 4% year-on-year in Q2 2025, as the growth momentum from early-year national subsidy policies began to fade. Huawei reclaimed the top spot with 12.2 million shipments, accounting for 18% of the market share; vivo followed closely with 11.8 million shipments, capturing 17%; OPPO (including OnePlus) ranked third with 10.7 million units, accounting for 16%. Xiaomi achieved year-on-year growth for the eighth consecutive quarter, ranking fourth with 10.4 million shipments; Apple ranked fifth with 10.1 million units. Von der Leyen: EU to Fully Replace Russian Energy with U.S. Energy to Reduce U.S. Tariffs To reduce U.S. tariffs from 30% to 15%, the European Commission committed to the U.S. that it will fully replace Russian oil and gas with U.S. liquefied natural gas, petroleum products, oil, and nuclear fuel. European Commission President Ursula von der Leyen made the statement on July 27 after talks with U.S. President Trump in Scotland. She said: “The agreement includes the EU purchasing significant amounts of U.S. liquefied natural gas and nuclear fuel, and completely abandoning Russian natural gas and oil.” Von der Leyen argued that EU countries “still buy too much Russian natural gas” and that Russian petroleum products “still flow into the EU through backdoors.” She claimed that the EU “no longer seems to need Russian resources” and stated that U.S. liquefied natural gas is “far better.” In response to reporters’ questions, she confirmed a commitment to purchase $75 billion worth of U.S. liquefied natural gas from Trump, but emphasized that the purchase will “be completed within three years, until the end of his term,” meaning approximately $25 billion per year. She also confirmed that the EU has committed to “large-scale investment in U.S. data center construction” but did not mention the content of the agreement Trump referred to as “the EU will massively purchase U.S. weapons.” Japan Expects Only 1-2% of $550 Billion U.S. Investment Commitment to Be Actual Investment Japan’s top trade negotiator Ryosei Akazawa told NHK on Saturday evening that the $550 billion investment framework will consist of investments, loans, and loan guarantees provided by Japanese government-backed financial institutions. He stated that the investment portion will account for 1% or 2%, and the U.S. and Japan will share investment profits in a 90:10 ratio. He added that Japan initially proposed a 50:50 profit-sharing ratio. Meanwhile, he said that through the trade agreement with the U.S. to reduce tariffs, Japan will save approximately 10 trillion yen. Argentine Government Announces Reduction in Export Withholding Tax on Some Agricultural Products Argentine President Javier Milei announced on the 26th that to boost the agricultural economy and incentivize production growth, Argentina will permanently reduce export withholding tax on agricultural products such as beef and soybeans. Speaking at the opening ceremony of Argentina’s 137th International Livestock, Agriculture, and Industry Exhibition on the 26th, Milei announced the permanent reduction of export withholding tax on beef, poultry, corn, sorghum, sunflower seeds, soybeans, and their by-products. Among them, the tax rate for beef and poultry was reduced from 6.75% to 5%; for corn and sorghum from 12% to 9.5%; for sunflower seeds from 7.5% to 5.5%; for soybeans from 33% to 26%; and for soybean by-products from 31% to 24.5%. Some Argentine economists pointed out that the fiscal revenue gap caused by the cancellation of export withholding tax will be filled by increases in other taxes, while overall agricultural output value is expected to rise due to the tax reduction.   Price Information:   USD/CNY Central Parity 7.1467, down 48 pips; previous trading day’s central parity 7.1419, previous trading day’s official closing price 7.1679, overnight closing price 7.1680.   Upstream Raw Materials USD Market Prices Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne. Propylene Northeast Asia: FOB Korea average price $740/tonne; CFR China average price $770/tonne. North Asia frozen cargo CIF price: propane $505-507/tonne; butane $485-487/tonne. South China frozen cargo for second half of August CIF price: propane $535-545/tonne; butane $520-530/tonne. Taiwan region frozen cargo CIF price: propane $505-507/tonne; butane $485-487/tonne. LLDPE USD Market Prices Film: $860-920/tonne (CFR Huangpu), down $5/tonne; Injection molding: $950/tonne (CFR Dongguan). HDPE USD Market Prices Film: $920/tonne (CFR Huangpu); Hollow: $855-865/tonne (CFR Huangpu); Pipe: $1,035/tonne (CFR Huangpu). LDPE USD Market Prices Film: $1,075-1,090/tonne (CFR Huangpu); Coating: $1,350/tonne (CFR Huangpu). PP USD Market Prices Homopolymer: $915-965/tonne (CFR Huangpu), up $5/tonne; Copolymer: $940-950/tonne (CFR Nansha); Film material: $1,030/tonne (CFR Nansha); Transparent: $1,000-1,065/tonne (CFR Huangpu); Pipe material: $1,160/tonne (CFR Shanghai).

International News Guide:   Raw Materials - Borealis: Plans for First Mechanical Recycling Plant Shelved for Now Automotive - Hyundai Motor Q2 Revenue Hits New High, Operating Profit Exceeds Expectations Packaging - ITOCHU launches joint pilot project for CNF reinforced plastic logistics containers Medical -Medical tubing extrusion company Xponent Global acquired by Arterex Additives - Bakelite acquires Sestec to boost bio-based adhesive portfolio Macro - Thai Acting Prime Minister: Escalating Military Actions May Lead to War Price - Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne   International News Details:   1. Borealis: Plans for First Mechanical Recycling Plant Shelved for Now Borealis has put its plans for a mechanical recycling plant for polyolefin waste at Schwechat, Austria, on hold for the time being. A spokesperson for the polyolefin group told Plasteurope.com that a detailed assessment of the project had shown that, under current market conditions, the plant would not “achieve the expected performance targets”. The project has therefore been put on hold for the now. 2. Hyundai Motor Q2 Revenue Hits New High, Operating Profit Exceeds Expectations Hyundai Motor announced that in the second quarter of this year, driven by strong sales of its hybrid vehicles in North America, its revenue rose 7.3% year-on-year to 48.287 trillion won (approximately $35.26 billion), a new high. However, affected by U.S. tariffs on imported automobiles, operating profit fell 15.8% year-on-year to 3.602 trillion won, but still slightly exceeded the median forecast (3.5 trillion won) compiled by Bloomberg. Net profit dropped 22.1% year-on-year to 3.25 trillion won. 3. Medical tubing extrusion company Xponent Global acquired by Arterex Arterex, a leading global medical device developer and contract manufacturer, has expanded its portfolio of medical device manufacturing companies with the acquisition of Xponent Global, Inc., an ISO 9001:2015 certified producer of extruded tubing for the medical industry based in Massachusetts, USA. 4. ITOCHU launches joint pilot project for CNF reinforced plastic logistics containers ITOCHU Corporation announced the launch of a joint demonstration project for cellulose nanofiber (CNF) reinforced plastic logistics containers in collaboration with FamilyMart Co., Ltd., SANKO Co., Ltd., and the Research Institute for Sustainable Humanosphere, Kyoto University 5. Bakelite acquires Sestec to boost bio-based adhesive portfolio Bakelite announces the acquisition of Sestec, a Poland-based company renowned for its sustainable, protein-based adhesives for wood and composite products. This strategic move significantly enhances Bakelite’s position as a sustainability leader in the adhesive industry. 6. ARA, Bernegger, GreenDot plan plastic recycling facility investment Altstoff Recycling Austria AG (ARA), Bernegger GmbH and GreenDot, owners of the TriPlast sorting plant in Ennshafen, Austria, have announced a 35-million-euro ($41.2 million) investment in a plastics recycling plant on the TriPlast site. 7. Thai Acting Prime Minister: Escalating Military Actions May Lead to War Thailand's 2nd Army Region, which manages parts of Thailand's border with Cambodia, stated today (July 25) that conflicts are occurring in multiple border areas, and people should avoid approaching the border region. Cambodia's military stated today that Thai forces attempted to occupy the Dângrêk Temple area this morning, and Cambodian forces repelled the attack. According to Cambodian media reports, clashes broke out again in the border area between Cambodia and Thailand in the early morning of today local time. Thai media also reported that artillery fire was heard on the Thai-Cambodian border in the morning.   Overseas Macro Updates:   ECB Governing Council Member Kazaks: Euro Remains Near Historical Average, No Rush to Adjust Rates ECB Governing Council Member Martins Kazaks stated that the euro remains close to its historical average, and the bank will continue to monitor exchange rate fluctuations; the ECB's stable and prudent policy is currently appropriate; the era of directly deciding to raise or lower interest rates has ended, as there is still untapped potential in the economy, and there is no rush to adjust rates. JPMorgan Postpones ECB Rate Cut Forecast to October According to reports, JPMorgan expects the ECB to implement its next rate cut in October, compared with a previous forecast of September. Goldman Sachs No Longer Expects ECB Rate Cuts This Year Goldman Sachs no longer expects the ECB to lower its deposit rate in 2025, compared with a previous forecast of a 25-basis-point cut in September; it predicts the terminal deposit rate will remain at 2% in 2025, compared with a previous forecast of 1.75%.Report: BOJ Expects Environment for Potential Rate Hike This YearAccording to Bloomberg, citing people familiar with the matter, after the U.S. and Japan reached a trade agreement this week, Bank of Japan officials believe that another rate hike may be considered this year. The officials view the agreement as reducing a key source of uncertainty for Japan's economy and businesses, allowing the central bank to focus on monitoring the actual impact of tariffs on upcoming economic data, the people said. With the trade situation clearer, the central bank may be able to make policy decisions at an earlier stage after analyzing data and information from enterprises. If the agreement to set most tariffs at 15% remains unchanged, officials expect the bank will have sufficient data by at least the end of this year to consider whether a rate hike is appropriate, the people said. They added that the BOJ will also closely monitor Japan's price trends and progress in trade negotiations with other countries as it considers the possibility. Volkswagen Lowers Earnings Forecast Due to U.S. Tariffs Impacting Audi and Porsche Profit Margins Volkswagen has lowered its financial forecast for this year, as rising costs due to Donald Trump's tariffs have pressured profit margins at Audi and Porsche. The automaker now expects an operating sales return rate as low as 4%, down from a previous forecast of at least 5.5%.   Price information:   USD/CNY Central Parity 7.1419, down 34 pips; previous trading day’s central parity 7.1385, previous trading day’s official closing price 7.1547, overnight closing price 7.1557. Upstream Raw Materials USD Market Prices Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne. Propylene Northeast Asia: FOB Korea average price $740/tonne; CFR China average price $770/tonne. North Asia frozen cargo CIF price: propane $504-506/tonne; butane $484-486/tonne. South China frozen cargo for second half of August CIF price: propane $544-554/tonne; butane $530-538/tonne. Taiwan region frozen cargo CIF price: propane $504-506/tonne; butane $484-486/tonne. LLDPE USD Market Prices Film: $860-920/tonne (CFR Huangpu), down $5/tonne; Injection molding: $950/tonne (CFR Dongguan). HDPE USD Market Prices Film: $920/tonne (CFR Huangpu); Hollow: $855-865/tonne (CFR Huangpu); Pipe: $1,035/tonne (CFR Huangpu). LDPE USD Market Prices Film: $1,075-1,090/tonne (CFR Huangpu); Coating: $1,350/tonne (CFR Huangpu). PP USD Market Prices Homopolymer: $965/tonne (CFR Huangpu); Copolymer: $940-950/tonne (CFR Nansha); Film material: $1,030/tonne (CFR Nansha); Transparent: $1,000-1,065/tonne (CFR Huangpu); Pipe material: $1,160/tonne (CFR Shanghai).

Itochu Corporation announced a joint demonstration project for cellulose nanofiber (CNF) reinforced plastic logistics containers in collaboration with FamilyMart Co., Ltd., Sankoh Co., Ltd., and the Institute for Sustainable Humanities at Kyoto University. The pilot demonstration project has been selected by Shizuoka Prefecture as a cellulose-based circular economy business demonstration project for the 2025 fiscal year. The plan will be implemented in approximately 80 FamilyMart convenience stores in Shizuoka City starting from August 2025, for a period of about six months, to verify the performance of CNF-reinforced plastic containers. Able to produce thinner, lighter, and stronger containers CNF is made from sustainably sourced wood and possesses high-performance characteristics such as strength and recyclability. Although the global CNF market size in 2024 is estimated to be only 6 billion yen, it is expected to experience significant growth as a sustainable biomass alternative to fossil-based materials for achieving decarbonization. Research institutions such as universities and companies in Japan have played a pioneering role in CNF development. However, due to high costs and other challenges, the commercial application of CNF remains limited. This project aims to promote the transition of advanced materials from the research and development stage to commercial-scale industrial use. Itochu Corporation has recently begun collaborating with Japanese plastic logistics material manufacturer Sankō to develop CNF-reinforced plastic logistics materials. By enabling the production of thinner, lighter, and stronger plastic logistics containers, CNF offers a sustainable solution. In response to current logistics challenges, FamilyMart, Japan’s second-largest convenience store chain, has decided to join the demonstration project, prioritizing workload reduction and improved loading efficiency. This initiative will mark the world’s first implementation of CNF-reinforced plastic materials in a retail store environment. The product developed in this project is a type of logistics material called a shallow container for food transportation (commonly known as "bat"). Sanko will manufacture CNF-reinforced plastic shallow containers. FamilyMart will use them to transport refrigerated food to approximately 80 stores in Shizuoka Prefecture. Additionally, Hiroyuki Yano, a specially appointed professor at Kyoto University and one of the world's leading authorities in the CNF field, will support product performance evaluation, environmental assessment, and product engineering. The goal of this alliance is to reduce thickness and weight by more than 15% and to explore other logistics applications. ITOCHU Corporation, under the business policy of "New Transactions, Shifting Profit Opportunities Downstream," is market-oriented and conducts extensive research ranging from industrial applications to luxury goods. ITOCHU will continue to expand the application range of CNF, aiming to realize a sustainable society through the widespread adoption of CNF.

Recently, the national standard "Furniture Environmental Awareness Design Guidelines" GB/T 45918-2025 has been released and will be officially implemented on January 1, 2026. This standard incorporates the concept of environmentally conscious design into the entire life cycle of furniture products. It puts forward detailed design and development requirements for each stage, including raw material procurement, manufacturing, transportation and sales, use and maintenance, and recycling and disposal. The aim is to reduce the potential impact of furniture products on human health and the ecological environment, and to promote the transformation and upgrading of the furniture industry towards green and sustainable development. In the raw material acquisition stage, the design should focus on the impact on human health and the environment.Avoid or reduce the use of raw materials containing substances harmful to human health and the environment, minimize the variety of raw materials used, and choose materials that can be directly recycled. During the manufacturing stage, design should focus on production energy consumption and pollutant emissions. Transportation and sales stageThe design should follow the following principles, including packaging, transportation, and storage of the product from the place of manufacture to the final user's location. a) For furniture products, pay attention to the design of packaging volume. While meeting the requirements, choose packaging materials with low density and also pay attention to the amount used. b) Try to use recyclable and reusable packaging materials. If possible, establish recycling channels for packaging materials and implement measures to promote the recycling of packaging materials. c) Try to use biodegradable plastic packaging materials. Inks, dyes, stabilizers, and heavy metals can be harmful to human health and the environment, so it is best to avoid using them in packaging design. The packaging should be designed with labels indicating recycling information and instructions for handling hazardous substances. In the usage and maintenance phase, product design should focus on ensuring user safety and facilitating convenient maintenance. In the recycling and disposal stage, the product’s recycling and treatment methods should be given special consideration during the design phase.Provide reasonable methods or channels for separating recyclable materials from non-recyclable materials, and deliver information conducive to material recycling to stakeholders such as consumers and recycling organizations through appropriate means.

International News Guide: Raw Materials - Kuraray Announces Price Hike of 10%-30% for PVA Fiber Products From August 1 Automotive - Tesla Q2 Earnings: Revenue Reaches $22.5 Billion Electronics - Australia Initiates Double Review Investigation Into Chinese PVC Flat Cables Packaging -Sonoco invests USD 30 Mn to expand adhesives & sealants capacity Macro - First Locally Produced XPeng X9 in Indonesia Delivered Price - LLDPE Film: $860-$920/tonne (CFR Huangpu), Down $5/tonne   International News Details:   1. Trump: To Impose "Simple Tariffs" of 15%-50% on Most Countries According to CCTV News, on July 23 local time, U.S. President Trump stated that he will impose simple tariffs of 15% to 50% on most other countries in the world. Trump also said that the U.S. is engaged in serious negotiations with the EU, and if they agree to open up to U.S. companies, the U.S. will allow them to pay lower tariffs. 2. Kuraray Announces Price Hike of 10%-30% for PVA Fiber Products From August 1 Recently, Japan's Kuraray Co., Ltd. announced that due to rising production costs, it will adjust the prices of its PVA fiber products by 10%-30% starting from August 1, 2025. Affected products include the entire range of PVA fiber products such as KURALON™, KURALON K-II™, and VINARL™.3. Sonoco invests USD 30 Mn to expand adhesives & sealants capacity Sonoco Products Company announces a $30 million capital investment to expand its production capacity in the growing adhesives and sealants (A&S) market. This strategic initiative will add 100 million additional units of annual capacity, ensuring Sonoco continues to meet increasing market demands while enhancing supply security. 4. Tesla Q2 Earnings: Revenue Reaches $22.5 BillionTesla released its Q2 2025 earnings report. The report shows that Tesla's Q2 revenue reached $22.5 billion (approximately RMB 160.9 billion), with total global deliveries exceeding 384,000 units. According to data from the China Passenger Car Association, Tesla Shanghai Gigafactory delivered 191,000 units in Q2, a 10.98% quarter-on-quarter increase from Q1.5. Coca-Cola Discloses Q2 Earnings: Net Profit Up 58% YoY Recently, Coca-Cola released its Q2 2025 earnings report. In Q2, Coca-Cola's revenue was $12.535 billion, up 1% YoY, and net profit was $3.803 billion, up 58% YoY. During the earnings call, management stated that strong performance in the Chinese market, flagship brand Coca-Cola, and the foodservice channel drove overall sales growth. 6. PSRA partners to expand EPS recycling across Colorado The Polystyrene Recycling Alliance (PSRA), a Washington-based organization working toward polystyrene (PS) and expanded polystyrene (EPS) recycling solutions, has announced a partnership with Circular Colorado, a nonprofit focused on building circular economies across the state and the surrounding region. The organizations say their initiative will expand access to EPS recycling across the state by integrating it into an existing collection and transportation network. 7. Australia Initiates Double Review Investigation Into Chinese PVC Flat Cables Recently, the Australian Anti-Dumping Commission issued Notice No. 2025/061, stating that in response to an application submitted by Chinese exporter Dongguan Minxing Cables Co., Ltd., it will initiate an anti-dumping and countervailing review investigation into PVC Flat Electrical Cables exported to Australia. The review will examine whether changes should be made to variable factors related to current anti-dumping and countervailing measures. The investigation period for this case is from April 1, 2024, to March 31, 2025. The Australian customs code for the involved products is 8544.49.20.41. The Australian Anti-Dumping Commission is expected to complete the basic facts report for the investigation no later than October 26, 2025, and submit the final report to Australia's Minister for Industry and Science no later than December 10, 2025. 8. Scheme Tackles Farm Plastic Pollution in Wales A new scheme is being trialled in south Wales with the aim of recycling an extra 200 tonnes of farm plastics to reduce river pollution of this kind. 9. Closing the GRAS "Loophole": New Bill to Push FDA to Strengthen Food Chemical Regulation Recently, new legislation aimed at reforming the U.S. Food and Drug Administration (FDA)'s "Generally Recognized As Safe" (GRAS) rules has been introduced in Congress. The "Ensuring Safe and Non-Toxic Food Act of 2025," proposed by Senators Ed Markey and Cory Booker, aims to address regulatory loopholes in food additives and food contact materials under GRAS rules through stricter safety reviews and transparency requirements. 10. Sun Chemical to Showcase Adhesives and Packaging Solutions at Labelexpo Europe 2025 Sun Chemical will present its latest innovations in sustainable and compliant inks, adhesives for the label and packaging sectors at Labelexpo Europe 2025. The event will be held in Fira Gran Via, Barcelona, Spain from 16–19 September in booth 3D92   Overseas Macro Updates:   Report: South Korea Considers U.S. Investment Commitment to Persuade Trump to Lower Auto Tariffs According to Bloomberg, as part of a trade agreement, the U.S. and South Korea have discussed creating a fund to invest in U.S. projects, similar to the agreement between Japan and the U.S. The scope of the discussions is currently unclear, but the U.S. has been seeking commitments totaling hundreds of billions of dollars. Negotiations with South Korea also aim to reach a 15% tariff rate, including auto tariffs. The agreement may also include South Korea's commitment to purchase more goods in key industries. Yonhap News Agency reported that South Korea will propose investing at least $100 billion in the U.S. U.S. Port Inbound Container Volume Drops for Second Consecutive Month According to Spain's El Economista website, the impact of tariff policies has already appeared in U.S. ports. Bloomberg data shows that the number of imported product containers received by U.S. ports in June fell for the second consecutive month, marking the first negative growth in the second quarter since 2020, indicating a contraction in U.S. merchandise imports. Scheduled U.S.-South Korea "2+2" Tariff Consultations Postponed Due to U.S. Treasury Secretary's Emergency Schedule The "2+2" tariff consultations between South Korean and U.S. finance ministers and trade negotiators, originally scheduled for the 25th local time, have been postponed due to U.S. Treasury Secretary Bessent's emergency schedule. Clashes Erupt Between Thailand and Cambodia in Border Area On the morning of July 24 local time, clashes broke out between Thailand and Cambodia in their border area. Previously, in response to Thailand's recall of its ambassador to Cambodia, expulsion of Cambodia's ambassador to Thailand, and downgrading of diplomatic relations with Cambodia, the Cambodian government announced reciprocal measures. First Locally Produced XPeng X9 in Indonesia Delivered Recently, XPeng Motors made its debut at the 2025 Indonesia International Motor Show, the largest automotive event in Southeast Asia. At the exhibition, XPeng officially announced that Indonesia has become the first country in the world to host XPeng's local production, with the first locally produced XPeng X9 delivered to an Indonesian owner. This marks the official launch of XPeng's global local production strategy, starting with Indonesia. Tesla's New Car Registrations in Europe Drop 22.9% YoY in June, Sixth Consecutive Monthly Decline Data released by the European Automobile Manufacturers' Association on July 24 shows that Tesla's new car registrations in Europe in June were 34,781 units, compared with 45,087 units in the same period last year, a YoY decline of 22.9%. This is the sixth consecutive monthly decline in Tesla's European sales.   Price Information:   USD/CNY Central Parity 7.1385, up 29 pips; previous trading day’s central parity 7.1414, previous trading day’s official closing price 7.1610, overnight closing price 7.1547. Upstream Raw Materials USD Market Prices Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne. Propylene Northeast Asia: FOB Korea average price $740/tonne; CFR China average price $770/tonne. North Asia frozen cargo CIF price: propane $496-498/tonne; butane $476-478/tonne. South China frozen cargo for second half of August CIF price: propane $543-553/tonne; butane $529-537/tonne. Taiwan region frozen cargo CIF price: propane $496-498/tonne; butane $476-478/tonne. LLDPE USD Market Prices Film: $860-920/tonne (CFR Huangpu), down $5/tonne; Injection molding: $950/tonne (CFR Dongguan). HDPE USD Market Prices Film: $920/tonne (CFR Huangpu); Hollow: $855-865/tonne (CFR Huangpu); Pipe: $1,035/tonne (CFR Huangpu). LDPE USD Market Prices Film: $1,075-1090/tonne (CFR Huangpu); Coating: $1,350/tonne (CFR Huangpu). PP USD Market Prices Homopolymer: $965/tonne (CFR Huangpu); Copolymer: $940-950/tonne (CFR Nansha); Film material: $1,030/tonne (CFR Nansha); Transparent: $1,000-1,065/tonne (CFR Huangpu); Pipe material: $1,160/tonne (CFR Shanghai).    

Recently, new legislation aiming to reform the U.S. Food and Drug Administration’s (FDA) Generally Recognized as Safe (GRAS) rules has been submitted to Congress. The 2025 Ensuring Safe and Toxic-Free Foods Act was introduced by Senators Ed Markey and Cory Booker. The bill aims to address regulatory gaps in the GRAS rules for food additives and food contact materials through more stringent safety reviews and transparency requirements. Source: markey.senate.gov Background of GRAS Rule The GRAS (Generally Recognized as Safe) rule was established by the FDA in 1972 to allow food ingredients that are widely recognized as safe (such as vinegar) to continue being used without review. Substances evaluated as GRAS can not only be used in food processing but may also be used in food contact materials under certain conditions. However, critics have pointed out that certain loopholes in the GRAS rule may allow novel additives to enter the food supply without adequate safety assessment. The new bill does not recognize substances previously determined as GRAS through self-affirmation, and in effect, seeks to require all GRAS substances to be reviewed and approved by the FDA. The senators also hope to strengthen the rigor of the FDA’s GRAS review process through this bill, in response to the public’s growing concerns about food safety. The core content of the new bill The "2025 Safe and Non-toxic Food Act" proposes the following key reforms: Stricter GRAS determination requirements: manufacturers must submit toxicological data, exposure analysis, and evidence proving that the substance is neither carcinogenic nor reproductive toxic. Enhance transparency: The FDA should disclose GRAS notifications and provide a 60-day public comment period. The FDA's authority: The FDA can reject previous GRAS determinations due to incomplete documentation, conflicts of interest among relevant experts, or insufficient evidence, and can reassess and revoke GRAS status at any time. Exclude high-risk substances: Prohibit untested or known toxic substances from obtaining GRAS status. Annual Review Quota: The FDA must review at least 50 GRAS notifications each year until the backlog is cleared. Expert Panel Reform: The FDA will update guidelines to ensure the independence and transparency of GRAS expert panels. In addition, the bill requires the FDA to reassess at least 10 food chemicals or categories every three years, prioritizing substances of public or regulatory concern, and manufacturers are required to provide relevant data. The strict scientific standards for GRAS determination will also apply to these reassessments. If enacted, the “Ensuring Safe and Non-toxic Foods Act of 2025” will significantly enhance regulatory requirements for GRAS Notices concerning food additives and food contact materials. By mandating the submission of scientific evidence, instituting a 60-day public comment period, and granting the FDA authority to reject or reevaluate submissions, the Act will greatly improve the rigor and transparency of the review process. Remind enterprises For companies that have already obtained GRAS authorization, it is important to be aware that existing substances may be subject to re-evaluation, especially those that have attracted public attention. Enterprises intending to apply for GRAS authorization should prepare detailed toxicological data, exposure analysis, and safety evidence in advance, avoid using untested or high-risk substances, and closely monitor the legislative progress related to GRAS. The new regulations will drive the food industry towards a safer and more transparent direction, while also requiring companies to invest more resources in research and compliance to maintain market competitiveness and earn consumer trust.

International News Highlights:   Raw Material News - CIRCLE Act Targets $30B Recycling Industry Boost Auto New-Toyota-Tsusho Cnompletes Acquisition of Radius Recycling Packaging News - M&S Trials UV-tagged Milk bottles to Track Plastics Recycling Additives News - Avient launches its ColorMatrix Amosorb Oxyloop portfolio Medical News - i-Foria launches demo plant in Northern Italy for recycling absorbent hygiene products Overseas Macro Updates - ADB Lowers Growth Forecast for Developing Economies in Asia-Pacific Amid U.S. Tariff Policies Price - USD/CNY Central Parity Rises to Highest Level Since November 6, 2024   International News Details:   1 Major Tariff Uncertainty! China-U.S.  to Hold Talks Next Week Regarding China-U.S. trade, Bessent revealed that the two countries have held "constructive" discussions, and the August 12 deadline for imposing tariffs on China may be extended again. The two countries will hold trade talks in Stockholm, Sweden next Monday and Tuesday to discuss the extension and China's purchase of oil from Russia and Iran. Previously, U.S. Republican Senator Lindsey Graham told ABC that a new bill he proposed to sanction Russia is expected to pass in Congress in July, with Trump currently expressing support. He also threatened that if China and India purchase Russian energy to support "Putin's machine," the U.S. will impose 500% tariffs on imported products from China and India under this bill. In addition, Bessent disclosed that China and the U.S. have held "constructive" discussions, and the August 12 deadline for tariffs on China may be extended again. Japan-Japan Reach Trade Agreement On July 22 local time, U.S. President Trump announced via social media that the U.S. and Japan have reached a trade agreement: a 15% tariff rate on Japan and $550 billion in Japanese investment in the U.S. Trump posted on his social platform "Truth Social" that the U.S. has just reached a "huge" agreement with Japan, possibly the largest ever. He stated that under his instruction, Japan will invest $550 billion in the U.S., and the U.S. will receive 90% of the profits. This agreement will create hundreds of thousands of jobs. Trump also said that perhaps most importantly, Japan will open its market for trade, including automobiles, trucks, rice, and other agricultural products and goods. Japan will pay a 15% reciprocal tariff to the U.S. Japan was one of the first countries to start trade negotiations with the U.S., with Japanese negotiators visiting the U.S. multiple times, and the two sides deadlocked over issues such as automobiles and agriculture. Trump recently threatened to raise tariffs on Japan to 25% and set an August 1 negotiation deadline. Philippines Grants Zero Tariffs to the U.S. According to U.S. political news website Politico, U.S. President Trump announced on social media that after meeting with Philippine President Marcos at the White House on the 22nd local time, the U.S. has reached a trade agreement with the Philippines. Trump posted on his "Truth Social" platform: "It was a pleasant visit, and we reached a trade agreement. The Philippines will open its market to the U.S. and implement zero tariffs." Trump also said that the U.S. will impose a 19% tariff on goods imported from the Philippines. Currently, the White House has not released more details of the U.S.-Philippines trade agreement, and the final terms of the agreement have not been formally confirmed by the Marcos government. Trump also stated that the United States will impose a 19% tariff on goods imported from the Philippines. The White House has not yet released further details of the U.S.-Philippines trade agreement, and the final terms of the agreement have not been officially confirmed by the Marcos administration. White House Releases U.S.-Indonesia Trade Agreement Framework, Final Negotiations UnderwayIn a joint statement on Tuesday afternoon, the White House disclosed that the U.S. and Indonesia have reached an agreement on a trade agreement framework, under which Indonesia will eliminate tariffs on most U.S. imports. Under this document called the "Reciprocal Trade Agreement," the U.S. will set tariffs on Indonesian imports at 19%. Although this rate is higher than the 10% benchmark tariff the U.S. imposes on almost all other countries, it is much lower than the 32% uniform tariff initially set for Indonesian goods in President Trump's "Liberation Day" tariff plan in April this year. The joint statement noted that the U.S. and Indonesia will "continue negotiations and finalize details of the Reciprocal Trade Agreement" in the coming weeks. It also stated that during this period, the two countries will "prepare for the signing of the agreement and complete domestic procedures before its entry into force." 2. CIRCLE Act Targets $30B Recycling Industry Boost Lawmakers on Capitol Hill will consider the Cultivating Investment in Recycling and Circular Local Economies (CIRCLE) Act of 2025, a bipartisan bill introduced recently by US Rep. Tom Suozzi, D-NY, and US Rep. Brian Fitzpatrick, R-PA. House Resolution 4466, currently in the Ways and Means Committee, would enhance recycling infrastructure and strengthen domestic manufacturing by establishing a targeted 30% investment tax credit for qualified investments in new or upgraded recycling infrastructure, phased out over 10 years. 3. Avient launches its ColorMatrix Amosorb Oxyloop portfolio Avient Corporation has announced the introduction of the first grade in its new ColorMatrix Amosorb Oxyloop portfolio of oxygen scavengers, ColorMatrix Amosorb Oxyloop-1. Formulated to enhance the recycling capabilities of Polyethene Terephthalate (PET) packaging, the oxygen scavenging additive offers a solution that helps extend shelf life, meet sustainability goals, and accelerate the transition towards a circular economy. 4. Arkema Launches New Brand Name Zenimid™ for Its Flagship High-Performance Polyimide Product LineArkema and its affiliate PI Advanced Materials announced the launch of Zenimid™, a new brand name for their flagship high-performance polyimide product line. This move marks a significant step for PI Advanced Materials in expanding the global reach of its product line across multiple markets including aerospace, automotive, electronics, and industry. Zenimid™ polyimides are specifically designed for use in the harshest environments, offering excellent dimensional stability, flexibility, heat resistance, chemical resistance, and electrical insulation. 5. i-Foria launches demo plant in Northern Italy for recycling absorbent hygiene products A new demonstration plant for the full recycling of absorbent hygiene products (AHPs)—including diapers, incontinence pads and sanitary napkins—was inaugurated Tuesday at the i-Foria Engineering Center in Spresiano, northeastern Italy. 6. AGC Inc. Transfers Polycarbonate Business, Sumitomo Bakelite Takes Over for a New Chapter On July 22, Japan's AGC Inc. officially announced that it has reached an agreement with Japan's Sumitomo Bakelite Co., Ltd. to transfer its polycarbonate business to Sumitomo Bakelite. This decision is no accident but an important adjustment based on AGC's strategic planning.7. European Bioplastics Association Relocates to Brussels, New Secretary-General Takes Office to Boost Strategic DevelopmentThe European Bioplastics Association (EUBP), the authoritative body representing the interests of Europe's bioplastics industry, has officially relocated its headquarters to Brussels. This relocation demonstrates the organization's determination to deepen lobbying with EU institutions, expand industry networks, and enhance policy influence. Along with the headquarters relocation, the association announced the appointment of Lorenza Romanese as the new Secretary-General. This manager with rich leadership experience in sustainable development and public affairs will lead the association into a new phase of strategic development and further integrate into the EU policy system. 8. M&S Trials UV-tagged Milk bottles to Track Plastics Recycling British retailer Marks & Spencer (M&S) has introduced invisible UV tags to the labels of its 4-pint milk bottles in an effort to improve tracking of how its plastics packaging is recycled. The move makes it the first UK retailer to put this type of technology on supermarket shelves. The UV tags are applied to product labels and cannot be seen by customers. Once the bottles are collected for recycling, they are scanned at participating facilities, allowing data to be sent back to the retailer. 9. Toyota-Tsusho Completes Acquisition of Radius Recycling Toyota Tsusho America Inc. (TAI), a United States subsidiary of Toyota Tsusho Corp. and the larger Toyota Group of Japan, has completed its acquisition of Radius Recycling Inc. Radius is a Portland, Oregon-based company formerly known as Schnitzer Steel Industries Inc. that operates a recycled-content electric arc furnace steel mill in Oregon, more than 50 metals recycling facilities and about 50 Pick-N-Pull auto dismantling locations.   Overseas Macro Updates:   U.S. and Japan Agree to Maintain Steel Tariffs, Lower Auto Tariffs According to reports, Japanese government officials stated that Japan and the U.S. have agreed to lower auto tariffs to 15% and maintain a 50% tariff on steel. ADB Lowers Growth Forecast for Developing Economies in Asia-Pacific Amid U.S. Tariff Policies On July 23, the Asian Development Bank released the "Asian Development Outlook 2025 (July Edition)," lowering the 2025 economic growth forecast for developing economies in the Asia-Pacific region to 4.7% and the 2026 growth forecast to 4.6%. The ADB stated that the downgrade is mainly due to U.S. tariff policies, global trade uncertainties, and weak domestic demand. South Korea Sets Red Lines for U.S. Tariff Negotiations According to Yonhap News Agency, South Korea has set rice and beef as "red lines" in tariff negotiations with the U.S. Canadian Prime Minister: Only Accept Trade Agreements Most Beneficial to Canada Canadian Prime Minister Carney stated on the 22nd local time that Canada will argue hard with the Trump administration at the negotiating table to ensure a trade agreement most beneficial to Canada. Carney also said that Canada is currently taking as many measures as possible to support industries affected by tariffs to ensure steady economic growth. News Reports Claim Japanese Prime Minister to Resign, but Ishiba Denies The Yomiuri Shimbun reported that Japanese Prime Minister Shigeru Ishiba will announce his resignation. After the news was released, USD/JPY rose briefly above the 147 mark. However, Ishiba himself reaffirmed his intention to stay in office. The 10-year Japanese government bond yield rose 10 basis points to 1.6%, the highest since October 2008. Trump Says: May Visit China "In the Near Future" Citing Reuters and Associated Press reports, Global Times stated that U.S. President Trump said on Tuesday (22nd) local time that he may visit China "in the near future." The report noted that he made the statement during a meeting with visiting Philippine President Marcos in the Oval Office of the White House. Saudi Supermarket Giant Othaim Joins AliExpress to Expand "1-Hour Delivery" Service Othaim, the largest supermarket chain in Saudi Arabia, has joined Alibaba's cross-border e-commerce platform AliExpress to achieve product and service integration. Since June, consumers can order food, seasonings, daily necessities, and consumer electronics from Othaim via AliExpress, with delivery as fast as 1 hour or in-store pickup. The service will first launch in central Riyadh and gradually expand to other regions in Saudi Arabia.   Price Information:   USD/CNY Central Parity7.1414, up 46 pips; previous trading day’s central parity 7.1460, previous trading day’s official closing price 7.1756, overnight closing price 7.1695. Upstream Raw Materials USD Market Prices Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne. Propylene Northeast Asia: FOB Korea average price $740/tonne; CFR China average price $770/tonne. North Asia frozen cargo CIF price: propane $487-489/tonne; butane $467-469/tonne. South China frozen cargo for second half of August CIF price: propane $518-528/tonne; butane $503-511/tonne. Taiwan region frozen cargo CIF price: propane $487-489/tonne; butane $467-469/tonne. LLDPE USD Market Prices Film: $860-900/tonne (CFR Huangpu); Injection molding: $950/tonne (CFR Dongguan). HDPE USD Market Prices Film: $920/tonne (CFR Huangpu); Hollow: $855-860/tonne (CFR Huangpu); Pipe: $1,035/tonne (CFR Huangpu), down $10/tonne. LDPE USD Market Prices Film: $1,070-1,075/tonne (CFR Huangpu); Coating: $1,350/tonne (CFR Huangpu). PP USD Market Prices Homopolymer: $965/tonne (CFR Huangpu); Copolymer: $940-950/tonne (CFR Nansha); Film material: $1,030/tonne (CFR Nansha); Transparent: $1,000-1,065/tonne (CFR Huangpu), down $5/tonne; Pipe material: $1,160/tonne (CFR Shanghai).

In July, Jusailong consecutively issued two announcements regarding changes in the shareholding ratio of the controlling shareholder, actual controller, and their persons acting in concert, attracting market attention. According to the disclosure, during the period from June 19 to July 15, 2025, the controlling shareholder and persons acting in concert reduced their holdings by a total of 596,500 shares through centralized bidding and block trading, accounting for 1.2481% of the company's total share capital. After the equity change, the shareholding ratio of Hao Yuanzeng, Ren Ping, Hao Jianxin, Wu Ruosi, Anyi Jusaolong Consulting Management Enterprise (Limited Partnership), Anyi Jubolong Consulting Management Enterprise (Limited Partnership), and other parties acting in concert will change from...51.6942% decreased to 50.4459%It touches the 1% integer multiple fluctuation line. Another announcement shows that the shareholding ratio of the controlling shareholder and persons acting in concert has reached a multiple of 5%. The company has disclosed a simplified report on changes in equity in accordance with regulations. Intensive Shareholding Reduction in Progress The share reduction announced this time is not an isolated event. Public information shows that on July 16, company executives Hao Jianxin, Ren Ping, and Wu Ruosi have...A total of 472,900 shares were reduced., accounting for 0.9896% of the company's total share capital. On July 18, director and executive Hao Jianxin once again reduced his holdings by 70,900 shares, accounting for 0.1484% of the company's total share capital. In just three days, Hao Jianxin alone reduced his holdings by 543,800 shares. On July 18th's closing data, it was reported that Jusalong experienced a block trade at a discount of 10.03%, with a total transaction amount of 2.9778 million yuan. Performance growth is sluggish, and profit growth is slow. Jusailong, as a high-tech enterprise specializing in the research, production, and sales of modified plastics, has maintained revenue growth in recent years but experienced sluggish profit growth. 2022 yearOperating revenue was 1.304 billion yuan, a slight year-on-year increase of 0.03%; net profit attributable to shareholders was 34.4945 million yuan, a year-on-year decrease of 46.24%. 2023Operating revenue reached 1.477 billion yuan, a year-on-year increase of 13.34%; net profit attributable to shareholders was 37.152 million yuan, a year-on-year increase of 7.7%. The year 2024Revenue was 1.709 billion yuan, an increase of 15.74% year-on-year; net profit attributable to shareholders was 38.4777 million yuan, an increase of 3.57% year-on-year. In the first quarter of 2025, the company achieved operating revenue of 360 million yuan, representing a year-on-year increase of 5.76%. Net profit attributable to shareholders was 15.8023 million yuan, up 9.32% year-on-year. In terms of profitability, during the period from 2022 to the first quarter of 2025, the company's gross profit margin on sales was9.94%-13.40%Fluctuations in between, net profit margin in sales1.51%-3.76%The fluctuations between. The 2024 third-quarter report shows that the company's gross profit margin is only 9.38%.   Capacity expansion in progress Despite facing shareholder reduction and profit pressure, Jusailong's capacity expansion plans are still underway. The company currently has three production bases in South China, East China, and Southwest China. The South China Phase II production base, as an IPO fundraising project of the company, has been capitalized and put into production with a designed capacity of 50,000 tons, and is currently in the capacity ramp-up phase. The East China Phase II production base is expected to be...Scheduled to be put into use by the end of June 2025After production begins, it is expected that 30% of the capacity will be released in the first year. The company stated that its modified plastics are customized products, with major clients being well-known enterprises in the home appliance and automotive industries, such as Midea, Supor, Hisense, Changan Group, and GAC Group. The strong customer loyalty provides a solid guarantee for capacity utilization. Market Response and Stock Price Performance On July 22, Jusailong's stock price fell by 1.58%, closing at 46.66 yuan per share, with a total market value of 2.23 billion yuan. Previously, on May 13, the company's stock price had reached 48.4 yuan, with a trailing price-to-earnings ratio of 58.08 times and a total market value of 2.313 billion yuan. As for the capital flow, data from May 13 indicates that the main capital inflow for Jusailong was 12.9342 million RMB, but over the past five days, there has been an overall outflow, totaling 34.6373 million RMB. Challenges and Prospects The main challenges faced by Jusailong include: Gross margin pressureThe intensifying industry competition and the pricing demands from downstream customers have impacted the product's gross profit margin. Cash flow issueOperating cash flow is negative, mainly due to differences in settlement terms between customers and suppliers. Shareholder selling pressureThe substantial share reduction by the controlling shareholder and parties acting in concert may affect market confidence. The company stated that it will respond to challenges by continuously optimizing product formulas, improving R&D technology and product added value, and enhancing production efficiency.

UK retailer Marks & Spencer (M&S) has introduced invisible UV labels on its 4-pint milk bottles to improve tracking of its plastic packaging recycling methods. The "UV" label is affixed to the product label and is not visible to the customer. This move makes it the first British retailer to place such technology on supermarket shelves. The UV label is attached to the product label and is not visible to customers. Once the bottles are collected for recycling, they are scanned at the recycling facility so that the data can be sent back to the retailers. The system was developed by technology company Polytag, enabling Marks & Spencer to see where, when, and how much packaging is recycled. The aim is to help retailers measure progress towards recycling targets and comply more accurately with Extended Producer Responsibility (EPR) regulations. EPR regulations require companies to take greater responsibility for the packaging placed on the market, including disposal and recycling costs. Marks & Spencer has invested £100,000 ($135,000) through the Ecotrace program. Polytag has already partnered with waste management companies such as Biffa and Re-Gen to install scanning devices at major recycling centers, which are now estimated to cover half of the UK.The journey to net zero Mark Hitschmann, Packaging Manager at Marks & Spencer, stated: "Reducing plastic is at the heart of our A Plan journey to achieve net zero emissions. Since 2022, we have collected over 500 million items from the food court."We are renowned for our innovation, not only in our product leadership—such as our Brain Food range and the latest viral hit, the Strawberry and Cream Sandwich—but also through our A Plan Accelerator Fund in sustainability, which enables us to apply our market-leading approach to further progress towards net zero emissions. “We hope that through our partnership with Polytag, we can gain more data and insights about what happens to our packaging in the real world. Our customers have consistently told us that reducing plastic is very important to them, so this is another way for them to trust that M&S is doing the right thing to help them make more sustainable choices easily when shopping with us. We hope that more precise data and better traceability will help improve both the quality and quantity of recycled materials in the UK.” Polytag CEO Alice Rackley stated: "Retailers and brands can no longer ignore packaging once it leaves the supply chain. With the implementation of EPR, we are entering a new era where real data is not only helpful but essential." “By tagging products and tracking their journey through the recycling system, we are creating clear visibility from the shelf to the sorting facility. Marks & Spencer taking this pioneering step not only demonstrates a commitment to transparency, but also signifies a genuine shift in how the industry approaches responsibility. This is an important milestone for the Ecotrace program and the wider UK recycling industry.” Editor: Lily The source of material: ecoplasticsinpackaging

The UK brand evaluation agency "Brand Finance" released the "Alcoholic Drinks 2025" global brand value ranking. In the "Spirits 50" category, Chinese brands Moutai, Wuliangye, Luzhou Laojiao, and Fenjiu took the top four positions, while Yanghe and Gujinggong also made it into the top ten. Brand Finance uses the royalty rate method to calculate the value of brands in its ranking table. This method estimates the future income attributable to the use of patents by calculating a brand's royalty rate in order to achieve "brand value." It can be understood as the net economic benefit the licensor can obtain through brand licensing in an open market. Rank Brand Location Brand Value/Annual Growth Rate 1. Moutai, China, $58.377 billion / +16.5% 2. Wuliangye, China, $27.778 billion / +7.3% 3. Luzhou Laojiao China USD 6.347 billion / -23.0% 4. Xinghuacun Fenjiu, China, $5.873 billion / -18.9% 5. Hennessy France $5.334 billion/+2.4% 6. Yanghe, China, $4.978 billion / -21.6% 7. Jack Daniel's, USA, $4.437 billion / +16.0% 8. Gujing Gong Jiu, China, $3.566 billion / -19.7% 9. Bacardi Bermuda 3.32 billion USD/+38.2% 10. Johnnie Walker, United Kingdom, $3.066 billion / +20.9%   11. Smirnoff Vodka, Russia 12. Crown Royal Whisky Canada 13. Patrón, Mexico 14. Guoyuan China 15. Don Julio, Mexico 16. High Noon USA 17. The Macallan, United Kingdom 18. Absolut Vodka, Sweden 19. Emperador, Philippines 20. Baileys Ireland 21. Chivas Regal, United Kingdom 22. Ruang Khao, Thailand 23. Grey Goose Vodka, France 24. Aperol, Italy 25. Royal Stag, India 26. Jameson, Ireland 27. Ballantine's, United Kingdom 28. Casamigos USA 29. José Cuervo, Mexico Captain Morgan, Jamaica   31. Chamisul (Jinro) South Korea 32. Suntory Whisky, Japan 33. McDowell's India 34. Bombay Sapphire, United Kingdom 35. Martell, France 36. Shede, China 37. Kweichow Zhenjiu, China 38. Rémy Martin, France 39. Ginebra San Miguel, Philippines 40. Gordon's United Kingdom 41. Martini Italy 42. Kouzi Distillery, China 43. Jagermeister, Germany 44. Imperial Korea 45. Twisted Tea USA 46. Sichuan Swellfun (Shuijingfang) China 47. Yingjia, China 48. Raki (Yeni Raki) Turkey 49. Nikka, Japan 50. Campari, Italy