Borealis suspends polyolefin recycling plant in Austria, Hyundai achieves record Q2 revenue, Volkswagen lowers performance expectations

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

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

5. Bakelite acquires Sestec to boost bio-based adhesive portfolio

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 Year

According 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).