New Global Polyolefin Giant to Emerge! Evonik Expands HTPB Global Capacity; DOMO Steps Up Investment in China

International News Guide:

Raw Material News: Evonik Expands Global Capacity of Hydroxyl-Terminated Polybutadiene (HTPB)

Automotive News: BMW Group Signs European Vehicle Recycling Agreement with PreZero

Electronics News: Malaysia Bans E-Waste Imports, Proposes 3-Month Ban on Plastic Waste Imports

Macroeconomic News: US Company Files Section 337 Investigation Petition on Certain Auto Parts, Components and Downstream Vehicles

Price Information: Ethylene CFR Northeast Asia at $695/mt, down $5/mt

Detailed International News:

1. Borealis, Borouge Merger and Related Acquisition of Nova Chemicals Expected to Close by End of Q1 2026

Alfred Stern, CEO of Austria’s OMV Group – parent company of Borealis – revealed that the merger of petrochemical joint ventures Borealis and Borouge, including the related acquisition of Canada’s Nova Chemicals, is expected to be completed simultaneously in the first quarter of 2026.

During OMV Group’s Q4 and full-year 2025 earnings analyst call on February 4, Stern stated that the merger remains subject to regulatory approvals and other customary closing conditions.

“At this stage, the remaining core work is to obtain outstanding relevant approvals,” he noted.

According to the parties, the merger will form a new combined entity – Borouge Group International (BGI) – which will become the world’s fourth-largest polyolefins producer.

2. BMW Group Signs European Vehicle Recycling Agreement with PreZero

BMW Group recently signed a cooperation agreement with PreZero, a German company focused on circular economy, at the Artificial Intelligence Innovation Campus in Heilbronn, Germany. The two parties will jointly build a closed-loop recycling business model for end-of-life vehicles across Europe, aiming to improve the reuse rate of automotive materials and strengthen supply chain resilience.

Under the agreement, the cooperation focuses on establishing a commercial recycling and reuse framework to maximize the lifecycle of vehicle materials and components, reduce reliance on virgin mineral resources, and enhance the stability and sustainability of Europe’s overall automotive supply chain.

3. Overseas’ Largest New Energy Material Project (100,000 Tons/Year) Completed, Fully Adopting Chinese Standards

On February 5 local time, the largest overseas polysilicon project and the first polysilicon plant in the Middle East was inaugurated in Sohar Port, Sultanate of Oman – the 100,000-tonne annual high-purity silicon-based material project of United Solar Polysilicon Co., Ltd. was completed and fully commissioned.

The project was constructed using Chinese solutions, marking the first overseas application of Chinese standards in the polysilicon sector.

4. Malaysia Bans E-Waste Imports, Proposes 3-Month Ban on Plastic Waste Imports

Malaysia’s Anti-Corruption Commission (MACC) announced a full and immediate ban on e-waste imports during the second meeting on the plastic and e-waste import management roadmap last week. The meeting also discussed a proposal to suspend plastic waste imports for three months, aiming to strengthen hazardous waste management control and environmental protection.

The Malaysian Plastic Recycling Association (MPRA) stated that suspending plastic waste imports would harm Malaysia’s plastic recycling industry and threaten livelihoods in the sector. The plastic recycling industry is a key component of Malaysia’s circular economy and overall economic development, and any disruption would trigger wider knock-on effects.

5. Scientists Develop “Impossible Material” Combining Plastic Toughness and Glass Processability

Researchers at Wageningen University & Research (WUR) in the Netherlands have broken long-standing materials science theories by developing a new class of materials called compleximers.

This amber-colored material combines properties long considered contradictory: exceptional impact strength similar to plastic, and easy shaping and blow-molding like glass.

Walter Post, Senior Researcher in Sustainable Plastics Technology, emphasized that the research opens the door to new types of plastics that are not only more repairable but can also be designed as biodegradable materials.

“Most applied research focuses on improving recycling efficiency,” Post concluded. “This work allows us to develop plastics that are easy to repair and even rapidly biodegradable.”

6. Covestro Partners with Fertiglobe and TA’ZIZ for Strategic Cooperation in Ammonia Sector

During German Chancellor Friedrich Merz’s visit to the UAE, Covestro signed a trilateral Memorandum of Understanding (MoU) with Fertiglobe – the world’s largest seaborne exporter of urea and ammonia – and TA’ZIZ, a world-class chemical hub under development in Abu Dhabi, to explore cooperation opportunities across the ammonia and nitric acid value chains.

Under the MoU, Covestro and Fertiglobe plan to explore short-term opportunities for Fertiglobe to supply ammonia to Covestro’s production sites in China and the US. Meanwhile, the parties will evaluate long-term supply solutions for Covestro’s European, Chinese and US sites based on low-carbon ammonia produced with carbon capture technology and green ammonia from renewable sources, including projects developed by Fertiglobe.

Ammonia is a key raw material for Covestro’s production of MDI (Methylene Diphenyl Diisocyanate) and TDI (Toluene Diisocyanate), essential components for rigid and flexible polyurethane foams.

7. DOMO Engineering Materials to Build New Asian Application Development Center in China

On February 6, DOMO Engineering Materials, a subsidiary of DOMO Group, announced the launch of construction for a new Asian Application Development Center at its Haiyan production base in Jiaxing, Zhejiang Province.

The center will work closely with DOMO’s European R&D teams to further strengthen the company’s global innovation network and support customers in China, Southeast Asia and other parts of Asia.

Preliminary preparations for the project are in full swing, including professional talent recruitment and equipment introduction.

8. Evonik Expands Global Capacity of Hydroxyl-Terminated Polybutadiene (HTPB)

Evonik is advancing its growth strategy by further strengthening its global production network for hydroxyl-terminated polybutadiene (HTPB). An expansion project at an existing production site in Germany is underway, with start-up scheduled for Q2 2027. At the same time, engineering design for a new project has begun to prepare for a new production facility in Asia.

This move follows significant investments over the past two years, including HTPB capacity expansion at the Marl site in 2024 and the new POLYVEST® ST E 60 polybutadiene production facility in Shanghai, China in 2025. The new investments will further expand global HTPB capacity.

Overseas Macro Market:

Japanese Media: Shigeru Ishiba Warns Tomomi Inada That Lower House Election Victory Does Not Mean “You Can Do Whatever You Want”

According to Japan’s San-in Chuo TV, former Japanese Prime Minister Shigeru Ishiba warned Tomomi Inada in an interview that the LDP’s victory in the House of Representatives election does not mean “you can do whatever you want.”

Cuba Facing Severe Aviation Fuel Shortage, Expected to Affect All International Airports

Sources stated that the Cuban government has issued a warning to international airlines operating in the country that aviation fuel will run out starting February 9 due to the US oil blockade. An official NOTAM issued by the Cuban government noted that the fuel shortage will affect all international airports in Cuba, valid for one month from February 10 to March 11.

Foreign Media: Iranian Foreign Minister Says Iran Has Briefed China, Russia on Iran-US Talks

According to TASS news agency on February 8, Iranian Foreign Minister Araghchi stated that Tehran has briefed China and Russia on details and progress of negotiations between Iran and the United States.

“We continue consultations with China and Russia,” Araghchi said.

US Company Files Section 337 Investigation Petition on Certain Auto Parts, Components and Downstream Vehicles

According to the Bureau of Trade Remedy and Investigation of China’s Ministry of Commerce, on February 5, 2026, General Motors filed a petition with the US International Trade Commission (USITC) under Section 337 of the Tariff Act of 1930.

The petition alleges that certain vehicle parts, components and downstream vehicles exported to, imported into or sold in the US infringe its patents. GM requests the USITC to institute a Section 337 investigation and issue a general exclusion order, limited exclusion order and cease-and-desist order.

A total of 20 companies from the US, China and other countries are involved.

Fed’s Daly Notes Labor Market Vulnerabilities, Sees Room for Rate Cuts

Mary Daly, President of the Federal Reserve Bank of San Francisco, stated that she believes one or two more rate cuts may be needed to address softness in the labor market, where workers are “walking on thin ice” – rising prices eroding wages while new job opportunities remain scarce.

“I think we have to keep an open mind, a very open mind, about interest rates,” Daly said.

Price Information:

The CNY/USD central parity rate was quoted at 6.9523, up 67 pips. Previous trading day central parity: 6.9590; official close: 6.9401; overnight close: 6.9354.

Upstream Raw Materials – USD Market Prices

Ethylene CFR Northeast Asia: $695/mt (down $5/mt)

Ethylene CFR Southeast Asia: $680/mt (stable)

Propylene Northeast Asia FOB South Korea: $790/mt (stable)

Propylene CFR China: $835/mt (stable)

North Asia Refrigerated Cargo CIF: Propane $568–570/mt; Butane $588–590/mt

South China Refrigerated Cargo CIF (Early March): Propane $599–609/mt; Butane $594–604/mt

Taiwan Region Refrigerated Cargo CIF: Propane $568–570/mt; Butane $588–590/mt

LLDPE USD Market Prices

Film grade: $830/mt (CFR Xiamen)

Injection grade: $910/mt (CFR Xiamen)

HDPE USD Market Prices

Film grade: $910/mt (CFR Huangpu)

Injection grade: $800/mt (CFR Huangpu)

Blow grade: $850/mt (CFR Huangpu)

Pipe grade: $1000/mt (CFR Huangpu)

LDPE USD Market Prices

Film grade: $1035/mt (CFR Huangpu)

Coating grade: $1240/mt (CFR Huangpu)

PP USD Market Prices

Injection grade: $830/mt (CFR Dongguan)

Copolymer grade: $890/mt (CFR Nansha)

Film grade: $980/mt (CFR Huangpu)

Transparent grade: $1075/mt (CFR Huangpu)

Pipe grade: $1130/mt (CFR Shanghai)