Sumitomo Chemical Announces Organizational Restructuring! EU Releases Provisional Agreement on End-of-Life Vehicle Regulation

International News Briefing:

Major Corporate News: Sumitomo Chemical Announces Organizational Restructuring; Battery Materials Division to Be Disbanded

Automotive News: EU Reaches Provisional Agreement on End-of-Life Vehicle Regulation; Chemical Recycling Recognized

Packaging News: Over 650,000 Plastic Water Bottles from Valley Springs in the U.S. Subject to Class II Recall

Robotics News: KRAIBURG Supplies Soft-Touch and Sustainable TPE for Robot Dogs

Macro News: Member of Iran's Assembly of Experts: Selection of New Supreme Leader to Be "Very Swift"

Price Update: USD/CNY Central Parity Hits Highest Level Since May 4, 2023

Details of International News:

1. EU Reaches Provisional Agreement on End-of-Life Vehicle Regulation; Chemical Recycling Recognized, Bio-Based Materials Await Assessment

Recently, the European Parliament and the Council of the European Union reached a provisional agreement on the End-of-Life Vehicle Regulation (ELVR), with detailed provisions officially released. The regulation aims to promote the use of more recycled plastics in new vehicles and introduce design requirements for new cars. If approved by the plenary session of the European Parliament and the Council of the European Union, the agreement will become formal law.

The provisional agreement was supported in a vote by the relevant committee of the European Parliament on February 25. According to the agreement, the new rules mainly include the following points:

Plastics produced via chemical recycling processes will be recognized and counted toward recycled plastic content targets using a mass balance accounting method.

Only post-consumer sourced materials will be allowed to count toward recycled content targets.

Whether bio-based materials and tire elastomers can be counted toward recycled plastic targets will be decided after a review by the European Commission.

Recycled plastic content targets may be lowered, and implementation timelines may be delayed if market supply is insufficient or prices are excessively high.

2. KRAIBURG Supplies Soft-Touch and Sustainable TPE for Robot Dogs

Robot manufacturers prioritize precision, reliability, and flexibility in material selection to ensure stable and comprehensive performance and enable safe interaction with humans. Engineering polymers, especially thermoplastic elastomers (TPE), are increasingly widely used in the robotics field due to their high strength and excellent properties.

KRAIBURG TPE is a global TPE manufacturer that provides customized solutions for multiple industries, including robotics, meeting the top-tier mechanical performance requirements of advanced robotic systems.

3. Sumitomo Chemical Announces Organizational Restructuring; Battery Materials Division to Be Disbanded

Plastmatch learned on March 3 that Sumitomo Chemical announced on March 2 that it will implement the following organizational restructuring starting April 1, 2026.

Head Office

To strengthen synergy across the company's R&D system and enhance corporate research functions, Sumitomo Chemical will restructure the Research Planning Coordination Department into two new departments:

Research Planning Department: Responsible for planning and coordinating technology and R&D-related matters across the company.

Corporate Research Planning Coordination Department: In charge of advancing and managing corporate research-related projects.

Corporate R&D Center

To optimize and strengthen commercial research for corporate research projects and enhance basic technological capabilities, the company will merge the Environmental Health Science Research Institute, Advanced Materials Development Research Institute, and Bioscience Research Institute to establish the new Advanced Basic Technology Research Institute. Additionally, the Corporate R&D Center will be renamed the Corporate Research Institute.

Information and Communication Technology & Mobility Solutions Division

As the company reorganizes and integrates its lithium-ion secondary battery separator business into its South Korean subsidiary SSLM, the Battery Materials Division will be disbanded.

4. Over 650,000 Plastic Water Bottles from Valley Springs in the U.S. Subject to Class II Recall

Valley Springs Artesian Gold LLC has voluntarily recalled over 650,000 products due to substandard hygiene in the bottled water production process. According to enforcement reports from the U.S. Food and Drug Administration (FDA), this recall highlights the importance of strictly enforcing hygiene standards in consumer goods production and packaging.

Last week, the FDA classified this recall as a Class II recall, meaning exposure to the products may result in "temporary or medically reversible adverse health consequences."

5. Industry Alert: UK Plastic Recycling Industry at a "Critical Turning Point"

A new whitepaper jointly released by the UK's Environment Agency and the British Plastics Federation states that the UK's plastic packaging recycling industry is at a "critical turning point." Based on interviews with multiple stakeholders across the supply chain, the report concludes that the UK's current plastic recycling operational capacity only meets 23% of the infrastructure required to recycle all plastic packaging in the domestic market, and urgent industry action is needed.

Robbie Staniforth, Director of Policy and Impact at the Environment Agency, stated: "The future of the UK's recycling industry is not set in stone. While this whitepaper identifies significant risks, its recommendations also offer hope for the sector."

Overseas Macro Market Information:

1. Member of Iran's Assembly of Experts: Selection of New Supreme Leader to Be "Very Swift"

A member of Iran's Assembly of Experts stated that the selection of a new Supreme Leader will not take long. The member emphasized that the process of selecting the new Supreme Leader will be "very swift" and will not be delayed.

2. S&P Downgrades SoftBank's Rating Outlook to "Negative" Following Additional Investment in OpenAI

S&P announced that it has downgraded SoftBank's rating outlook to "negative" while maintaining its "BB+" rating. As OpenAI now accounts for a larger share of its assets, S&P believes that the liquidity of SoftBank Group's investment portfolio will deteriorate, and the credit reliability of SoftBank Group's investment assets may also decline.

3. Iran Vows to Destroy Any Vessels Attempting to Cross the Strait of Hormuz

On March 2 local time, Iranian media reported that General Jabbari, Commander of the Islamic Revolutionary Guard Corps, stated that any vessel attempting to cross the Strait of Hormuz will be destroyed, and Iran will not allow a single drop of oil to flow out of the region.

However, according to Fox News, a senior U.S. military officer stated that Iran has not patrolled or imposed a blockade on the Strait of Hormuz. There is currently no evidence of mines in the relevant waters, although merchant ships are navigating cautiously in the area.

4. U.S. Envoy Reveals Details of Negotiation Collapse Before Military Strike on Iran: Iran Rejects "Zero Uranium Enrichment for a Decade" Proposal

On March 2 local time, U.S. President Trump's envoy Witkoff stated that efforts by Washington and Tehran to reach a nuclear deal ultimately collapsed before the U.S. military launched large-scale military operations against Iran on February 28, and it became "clearly impossible" to achieve results by the third round of talks.

Witkoff said that the U.S. proposed that Iran completely halt uranium enrichment for a decade, and the U.S. would provide nuclear fuel. "We discussed this with them and offered to pay for the fuel," he said. "Iran rejected it, and we realized at that moment that their intention was to retain uranium enrichment capabilities for weaponization."

5. U.S. Military Deploys Large Number of Tankers to the Middle East Again

On March 2 local time, according to information released by open-source intelligence accounts, over 10 U.S. Air Force KC-135 tanker aircraft have taken off from multiple bases in the U.S., crossing the Atlantic and European airspace, and are likely heading to the Middle East to participate in military operations against Iran. The U.S. military has not yet issued an official statement regarding this large-scale tanker deployment.

Price Information:

1. USD/CNY Central Parity Hits Highest Level Since May 4, 2023

The USD/CNY central parity rate was set at 6.9088, an increase of 148 pips. The previous trading day's central parity rate was 6.9236, the official closing rate was 6.8855, and the overnight trading rate closed at 6.9058.

2. Upstream Raw Material USD Market Prices (March 2)

CFR Northeast Asia: $750/ton (+$40/ton)

CFR Southeast Asia: $740/ton (+$30/ton)

Northeast Asia Propylene: FOB South Korea average $805/ton (+$10/ton); CFR China average $860/ton (+$20/ton)

North Asia Frozen Cargo CIF: Propane $742–744/ton; Butane $742–744/ton

South China Frozen Cargo CIF (Early April): Propane $807–817/ton; Butane $802–812/ton

Taiwan Region Frozen Cargo CIF: Propane $742–744/ton; Butane $742–744/ton

3. LLDPE USD Market Prices

Film Grade: $845/ton (CFR Huangpu)

Injection Molding Grade: $1,020/ton (CFR Huangpu)

4. HDPE USD Market Prices

Film Grade: $1,000/ton (CFR Huangpu)

Blow Molding Grade: $930/ton (CFR Huangpu)

Injection Molding Grade: No quotation

Pipe Grade: No quotation

5. LDPE USD Market Prices

Film Grade: $1,110/ton (CFR Dongguan)

Coating Grade: No quotation

6. PP USD Market Prices

Homopolymer: $880/ton (CFR Huangpu)

Copolymer: $950/ton (CFR Nansha)

Film Grade: $1,050/ton (CFR Huangpu)

Transparent Grade: $1,095–1,135/ton (CFR Huangpu)

Pipe Grade: $1,150/ton (CFR Shanghai)