【Overseas Highlights】BASF and LANXESS Announce Price Increases! LG Chem Shuts Down Yeosu No.2 Facility; South Korean Petrochemical Industry Faces Contagious Shutdowns

International News Briefing:

Raw Materials News: BASF to Increase Caprolactam and Polyamide Prices in North America

Automotive News – India’s Automotive Industry Faces Supply Chain Disruption Risks Due to “Gas Shortage”

Packaging News – L’Oréal Partners with Dioxycle to Develop Carbon-Eating Packaging Materials

Equipment News - Automa, under Magic, Launches Its First Fully Electric Blow Molding Machine

Macro News - Japanese Prime Minister asks the International Energy Agency to be prepared to release more oil reserves if necessary.

The Chinese yuan exchange rate to the US dollar mid-price was quoted at 6.8911, up 32 points.

International News Details:

1. LG Chem shuts down Yeosu No. 2 plant, South Korea's petrochemical industry faces chain shutdown!

According to SPC News on March 25, the largest petrochemical company in South Korea, LG Chem, has decided to shut down some facilities at its Yeosu core plant due to the prolonged disruption of naphtha supply caused by the blockade of the Strait of Hormuz. According to industry sources on the 23rd, LG Chem plans to shut down its No. 2 unit located in the Yeosu National Industrial Complex this week, and will officially announce the decision in the coming days. Currently, LG Chem operates two naphtha cracking (NCC) units in Yeosu: the No. 1 unit has an annual capacity of 1.2 million tons, and the No. 2 unit has an annual capacity of 0.8 million tons.

Up to 50%! LANXESS Raises Prices for Flame Retardants, Specialty Additives, and Plasticizers

Recently, the specialty chemicals company LANXESS announced that starting March 23, it will increase the prices of its polymer additives product portfolio. The price increase for flame retardants and specialty additives can be as high as 35%, while the increase for plasticizers can reach up to 50%. This price adjustment mainly reflects the ongoing cost pressures, including the sharply rising energy, key raw material, and logistics costs due to ongoing geopolitical tensions.

3. BASF will increase caprolactam and polyamide prices in North America

BASF announced that starting April 1, 2026, or as permitted by contract, it will increase the price of caprolactam, polyamide 6 (PA6), and copolyamide (PA6/66) by $0.20 per pound (approximately 3,175 yuan per ton) in the North American region. Ongoing global changes continue to cause significant fluctuations in the nylon value chain, and further price adjustments may be necessary in the future.

4. L'Oréal partners with Dioxycle: Creating "carbon-eating" packaging materials

Recently, L'Oréal and the startup Dioxycle announced a multi-year offtake cooperation agreement aimed at converting captured industrial carbon emissions into high-performance, sustainable packaging materials. This is not only a key move in L'Oréal's "L'Oréal for the Future" sustainability project, but it may also initiate a "carbon revolution" in the consumer goods packaging sector. The company, founded in 2021, has developed a disruptive technology: using renewable electricity to break down recycled industrial carbon emissions (including carbon monoxide and carbon dioxide) along with water into ethylene under low-temperature conditions.

5. Magic’s subsidiary Automa launches its first fully electric blow molding machine.

Italian blow molding manufacturer Magic's Automa has launched a new series of reciprocating all-electric continuous extrusion blow molding machines, specifically designed for factories that require smaller equipment. The new AbM series offers three models, supporting single and double station configurations. These three models are: AbM3 (with a clamping force of approximately 3.4 tons), AbM6 (with a clamping force of 6.7 tons), and AbM12 (with a clamping force of 15.7 tons). This series of equipment is suitable for a wide range of products, from small bottles to 2.6-gallon (9.84 liters) plastic buckets. The AbM series models can be equipped with extruders ranging from 30 mm to 110/25D mm in diameter, with a plasticizing capacity of up to 728 pounds (0.33 tons) per hour. The series can process polyethylene (PE) or polypropylene (PP) and also supports multi-layer co-extrusion.

6. India's automotive industry faces supply chain disruption risks due to a "gas shortage."

Recent escalation of hostilities in the Middle East has led to a tightening of natural gas supply, putting Indian auto companies and parts suppliers at risk of production slowdowns and supply chain disruptions. More than 20 executives from Indian car manufacturers, parts suppliers, and dealers revealed that some parts suppliers of major Indian automakers such as Maruti Suzuki, Tata Motors, and Mahindra are already experiencing operational difficulties due to the "gas shortage," signaling the initial signs of supply chain tension. At least four executives stated that parts of some factories under Tata Motors and Mahindra are operating below normal capacity. As a supplier to Mahindra, India Aluminum Industries recently warned its customers about the "force majeure" risk of potential supply disruptions caused by the natural gas shortage.

Overseas macro market

Japanese Prime Minister Requests the International Energy Agency to Prepare for Further Release of Strategic Petroleum Reserves if Necessary

[Islamic Revolutionary Guard Corps of Iran: Will "mercilessly" deliver a fierce blow to the Israeli army]

According to reports from the Islamic Republic of Iran Broadcasting and other media on the 25th, the Islamic Revolutionary Guard Corps of Iran announced the launch of the 80th wave of the "True Promise-4" operation, stating that the Revolutionary Guards will "show no mercy" and will launch fierce attacks on Israeli military bases in northern Israel and the Gaza Strip.

[Israeli Defense Minister says a "buffer zone" will be established in southern Lebanon]

On the 24th local time, Israeli Defense Minister Katz announced that Israel will occupy southern Lebanon up to the Litani River to establish a "defensive buffer zone." This is the first time Israel has clearly stated its intention to seize nearly one-tenth of Lebanese territory. On the same day, the Lebanese Hezbollah armed group announced that it would fight with all its might to prevent the Israeli army from occupying southern Lebanon, calling Israel's move a "threat to Lebanon's survival."

[Iran launches "True Pledge 4" 80th wave of attacks]

The Islamic Revolutionary Guard Corps of Iran announced that it has launched the 80th wave of the "True Promise 4" operation, striking strategic and military centers in the northern region of Israel with missiles. The announcement stated that the target of this operation was the Northern Command north of Safed in Israel. In addition, Tel Aviv, Kiryat Shmona, Bnei Brak, and multiple US military bases in the region were also attacked by missiles and combat drones.

[Report: Iran inclined to negotiate with Vance, accuses Witkoff and Kushner of "betrayal"]

According to a report by the UK's Daily Telegraph on the 24th, Iran has refused to accept U.S. President's envoy Witkev and Trump's son-in-law Kushner as U.S. negotiators, accusing the two of being "treacherous."

Price Information:

The RMB central parity against the US dollar was quoted at 6.8911, up 32 points; the previous trading day's central parity was 6.8943, the official closing price of the previous trading day was 6.8877, and the overnight deal closed at 6.8916.

[Upstream Raw Material USD Market Price]

On March 24, CFR Northeast Asia was steady at USD 1,450/ton, and CFR Southeast Asia was steady at USD 1,450/ton.

Northeast Asian propylene FOB Korea average price rose by $20/ton to $1,200/ton, while CFR China average price remained stable at $1,235/ton.

North Asia CFR price for frozen cargo: propane at USD 978–988 per metric ton; butane at USD 978–988 per metric ton.

China South China refrigerated cargo April arrival price: propane $1,186–$1,206/ton; butane $1,186–$1,206/ton.

CIF prices for LPG in Taiwan: Propane USD 978–988 per metric ton; Butane USD 978–988 per metric ton.

[LLDPE USD Price]

Film: USD 1,160 per metric ton (CFR Huangpu)

Injection molding: USD 1,450 per metric ton (CFR Dongguan)

[HDPE US Dollar Market Price]

Film: No quotation available

Hollow: 1250 USD/ton (CFR Huangpu)

Injection molding: 1420 USD/ton (CFR Yantian)

Pipe material: No quotation available;

[LDPE US Dollar Market Price]

Film: USD 1,450 per metric ton (CFR Dongguan)

Coating: No quotation.

[PP USD Market Price]

Homopolymer: 1310 USD/ton (CFR Huangpu)

Copolymer: $1,535/ton (CFR Huangpu);

Film material: No quotation;

Transparent: USD 1,435 per metric ton (CFR Huangpu)

Pipe material: $1,530/ton (CFR Shanghai).