16 South Korean Petrochemical Firms Submit Restructuring Plans! EU to Tighten Inspections on Imported Recycled Plastics

International News Guide

Raw Material News - South Korean petrochemical firms submit restructuring plans; government urges accelerated implementation

Medical News - EU’s Biotechnology Act officially released

Automotive News - 75% recycled content! Hexpol TPE gains Porsche certification

Aerospace News - South Korea’s first commercial carrier rocket catches fire and fails over a minute after launch

Macroeconomic News - Foreign Ministry responds to Hainan Free Trade Port closure: China will open its doors wider and offer more development opportunities

Market Price - CNY/USD central parity hits a near 15-month high

International News Details

1.South Korean Petrochemical Firms Submit Restructuring Plans; Government Urges Accelerated Implementation

The Ministry of Trade, Industry and Energy of the Republic of Korea announced that 16 major petrochemical enterprises operating in the country’s three core production bases (Yeosu, Daesan, Ulsan) have all submitted their business restructuring plans by the government-set deadline of the end of December. This move is a key step in the implementation of the Petrochemical Industry Revitalization Roadmap released by the government in August, paving the way for a significant reduction in South Korea’s ethylene production capacity.

The government will review and approve the relevant plans through the Business Restructuring Plan Review Committee. After approval, the authorities will introduce a comprehensive support policy covering finance, taxation, R&D and regulatory exemptions to facilitate the implementation of the restructuring.

2.UK Media: EU Plans to Inspect Imported Plastics for Recycled Plastic Industry

According to a report by the Financial Times, the European Union is planning to inspect imported plastics and launch a number of supporting measures to boost the development of its domestic recycled plastic industry. The EU may submit the relevant proposal as early as this Tuesday, which includes inspection requirements for imported plastics to ensure that the relevant goods are all recycled plastics.

EU Environment Commissioner Jessica Roswall stated in an interview that the current recycled plastic industry is in a deep crisis. The EU plans to strengthen import monitoring and add a customs code to distinguish between recycled plastics and virgin plastics. Roswall pointed out: A large amount of plastic is currently flooding into the EU market from non-EU countries. The European Commission will also promote consensus among the 27 member states to formulate uniform standards for defining recycled materials converted from waste into new raw materials.

3.Borealis Joins EU’s ELECTRO Project! Converting Low-Quality Plastic Waste into High-Purity Olefins

Borealis is one of the partners in the ELECTRO project. Funded by the EU, this cutting-edge initiative aims to promote the construction of a climate-neutral circular plastic system in Europe. The project brings together top universities such as Ghent University, research institutions and industry enterprises to jointly develop electrified high-efficiency recycling technology, which can convert low-quality plastic waste into high-value-added raw materials.

4.EU’s Biotechnology Act Officially Released
The European Commission officially released the Biotechnology Act and a series of supporting measures, aiming to address the lag of the local biotech industry in global competition and strengthen the long-term resilience and core competitiveness of the medical industry.

The core of the Biotechnology Act is to unblock the key link from "laboratory innovation to market application": on the one hand, optimize the EU-level regulatory framework, establish a unified approval channel for complex innovative products, and accelerate the approval of cross-border clinical trials with the help of artificial intelligence, data technology and regulatory sandbox mechanisms, effectively reducing corporate compliance costs and operational burdens; on the other hand, guide enterprises to deepen local R&D and production through policy incentives to support the research of cutting-edge therapies.

The "EU Biotechnology" special plan launched on the same day has also attracted much attention. Affiliated to the European Investment Bank Group’s "EU Technology Plan", it plans to leverage 10 billion euros in capital from 2026 to 2027. Relying on the existing 3.5 billion euro life science venture debt portfolio and an annual 800 million euro venture capital commitment, it will fill the industrial investment gap and explore diversified financing channels. The "EU Biotechnology" special plan may also lay the foundation for designing new EU health biotech investment pilot projects, which will attract new private investors and act as market catalysts.

5.75% Recycled Content! Hexpol TPE Gains Porsche Certification

Hexpol recently announced that its Dryflex Circular thermoplastic elastomer (TPE) product line has successfully obtained Porsche PN 780 standard certification. This standard applies to automotive interior parts and specifies strict requirements for low odor and low volatile organic compound (VOC) emissions.

According to Hexpol, the Dryflex Circular series materials can contain up to 75% recycled content, with flexible selection of post-industrial and post-consumer recycled materials based on specific application scenarios. Among them, the Dryflex PIR 853317-2 product contains 45% recycled content. Tested in accordance with the PN 780 standard process, its individual volatile substance content and total VOC emission level are significantly lower than the standard limits.

6.Major Shareholding Change at Brazilian Petrochemical Giant Braskem! Old Shareholders Exit!

Novonor Group (formerly Odebrecht Group), one of the major shareholders of Brazil’s Braskem S.A., has decided to sell its shares to private equity firm Vórtx Capital, with the support of IG4 Capital. After the completion of the transaction, Vórtx Capital and another major shareholder Petrobras (Petróleo Brasileiro S.A.) will jointly hold the shares of this petrochemical group.

As an important producer of polyolefins, polyvinyl chloride (PVC) and bioplastics in the Americas, Braskem S.A. is about to undergo a change in its shareholding structure.

7.Tesla’s Market Share in EU, UK and EFTA Drops to 2.1%
European Automobile Manufacturers Association: In November, Tesla’s market share in the European Union, the United Kingdom and the European Free Trade Association dropped to 2.1%, while BYD’s market share stood at 2%. Tesla’s market share in pure electric vehicles was 9%.

8.South Korea’s First Commercial Carrier Rocket Catches Fire and Fails over a Minute after Launch

According to Xinhua News Agency citing Yonhap News Agency on the 23rd, South Korea’s first commercial carrier rocket caught fire and failed after launch on the same day. Another report by CCTV News stated that the rocket caught fire more than a minute after liftoff.

At around 10:13 a.m. Seoul time on the 23rd, the first commercial carrier rocket "Hanwha-Nano" of South Korean private carrier rocket enterprise INNOSPACE was launched from the Alcântara Space Center in Brazil. Shortly after liftoff, images suspected of an explosion were captured, and the launch ended in failure.

Overseas Macro Market

[Foreign Ministry: China Supports All Efforts Conducive to Peace]

On December 23, Foreign Ministry Spokesperson Lin Jian hosted a regular press conference. When answering a question about the situation in Ukraine, Lin Jian said that since the outbreak of the Ukraine crisis, China has maintained close communication with relevant parties including Russia and Ukraine, and has always been committed to a ceasefire and cessation of hostilities, as well as promoting peace talks. Its efforts are obvious to the international community. China supports all efforts conducive to peace and will continue to play a constructive role in this regard.

[Foreign Ministry Responds to Hainan Free Trade Port Closure: China Will Open Its Doors Wider and Offer More Development Opportunities]

Starting from December 18, the Hainan Free Trade Port officially launched the whole-island closure operation. In response, Foreign Ministry Spokesperson Lin Jian said that from the establishment of the Hainan Special Economic Zone in 1988 to the recent launch of the whole-island closure operation of the Hainan Free Trade Port, Hainan has left a profound mark in China’s reform and opening-up history.

Faced with increasing uncertainties in the world economy, China has fulfilled its opening-up commitments with concrete actions, met the countercurrent of protectionism with firm determination, and promoted the building of an open world economy. China will open its doors wider and offer more development opportunities, continuously injecting new impetus into promoting global common prosperity.

[US Hypes Up China’s Deployment of 100 Missiles in Three New Silos; Foreign Ministry Refutes]

Foreign Ministry Spokesperson Lin Jian hosted a regular press conference. A Reuters reporter asked: A draft Pentagon report claims that China may have deployed more than 100 intercontinental ballistic missiles in three latest underground silos. The report also points out that China has no intention of participating in arms control negotiations. What is the Foreign Ministry’s comment on this?

Lin Jian pointed out that the Chinese government recently released the white paper China’s Arms Control, Disarmament and Non-Proliferation in the New Era, which comprehensively clarifies China’s nuclear policy and arms control stance. China firmly abides by the policy of no first use of nuclear weapons, adheres to a self-defensive nuclear strategy, and always maintains its nuclear force at the minimum level required for national security, without engaging in a nuclear arms race with any country.

[Indonesian Rupiah Hits Lowest Level Since April Amid Lingering Fiscal Worries]

Affected by fiscal worries, the exchange rate of the Indonesian rupiah against the US dollar hit its lowest level since April. The USD/IDR rose 0.1% to 16,790, the highest level since April 29. The rupiah has fallen by about 4% so far this year.

[South Korea’s Direct Investment in US Rises 55% After Korea-US Trade Deal]

The Ministry of Strategy and Finance of the Republic of Korea stated in a declaration that South Korea’s direct investment in the United States surged to 5.97 billion US dollars in the third quarter, an increase of 55% year-on-year. The country’s total foreign direct investment rose to 16.1 billion US dollars, an increase of more than 9% year-on-year.

[Iranian Foreign Ministry: Iran’s Defense Development Program Is Non-Negotiable]

On the 22nd local time, Iranian Foreign Ministry Spokesperson Nasser Kanaani held a press conference on the nuclear issue, regional situation, Iran-US relations and other issues. Kanaani emphasized that Iran’s development of its missile program is aimed at safeguarding its own sovereignty. Under no circumstances will Iran’s defense capabilities become a topic of negotiation.

Price Information

CNY/USD central parity rate (a near 15-month high): Quoted at 7.0523, up 49 pips; the central parity rate of the previous trading day was 7.0572, the official closing price of the previous trading day was 7.0382, and the overnight closing price was 7.0368.

Upstream raw material USD market prices:

Ethylene: $745 per ton (CFR Northeast Asia); $725 per ton (CFR Southeast Asia)

Propylene (Northeast Asia): Average FOB South Korea price of $710 per ton; average CFR China price of $742 per ton

Refrigerated cargo CIF prices (North Asia): Propane ranges from $511 to $513 per ton; butane ranges from $566 to $568 per ton

Refrigerated cargo CIF prices (South China, early January): Propane between $569 and $579 per ton; butane between $559 and $569 per ton

Refrigerated cargo CIF prices (Taiwan Region): Propane ranges from $511 to $513 per ton; butane ranges from $566 to $568 per ton

LLDPE USD market prices (CFR Huangpu unless specified):

Film: $730-$745 per ton

Injection: $870 per ton

HDPE USD market prices (CFR Huangpu unless specified):

Film: $870 per ton

Injection: $770 per ton

Hollow: $795-$805 per ton

Pipe: $1000 per ton

LDPE USD market prices:

Film: $940-$950 per ton (CFR Huangpu)

Coating: $1050-$1180 per ton (CFR Qingdao)

PP USD market prices:

Injection: $770 per ton (CFR Huangpu)

Copolymer: $830-$855 per ton (CFR Nansha)

Film grade: $970-$990 per ton (CFR Huangpu)

Transparent grade: $1090 per ton (CFR Dongguan, January arrival)

Pipe grade: $1100 per ton (CFR Shanghai)