Trump Imposes Approximately 100% Tariffs on Chips and Semiconductors! LG and Westlake Chemical Release Their Q2 Financial Results!

International News Guide:

Raw Materials News -  LG Chem Announces Q2 Financial Results ;

Automobile News - Honda's Net Profit Plummets from April to June Due to U.S. Tariffs;

Electronics News -Avient Expands rPC and PC Blends Portfolio for E&E Industry to EMEA  ;

Packaging News -Origincorp Plans to Invest in Factories in Thailand and Kazakhstan ;

Macroeconomic News - Mexican President Says "No Need" to Reach Bilateral Trade Agreement with Canada;

Price Information - North Asia Frozen Cargo CIF Price: Propane 511-513 USD/ton; Butane 501-503 USD/ton

The following are the details of international news: 

1、Trump: Imposing Approximately 100% Tariffs on Chips and Semiconductors

On August 6 local time, U.S. President Trump stated that the United States will impose approximately 100% tariffs on chips and semiconductors. Trump said that if they are manufactured in the United States, no fees will be charged.

2、Borealis Pauses Plans for Plastics Recycling Plant in Schwechat, Austria

3、 LG Chem Announces Q2 Financial Results

LG Chem reported its consolidated financial results for the second quarter on the 25th, recording a revenue of KRW 12.2997 trillion and an operating profit of KRW 405.9 billion. Compared to the same period last year, revenue decreased by 14.2% and operating profit by 34.3%. However, compared to the previous quarter, revenue increased by 5.9% and operating profit by 53.4%, respectively.

4、Westlake Chemical (WLK) Reports Q2 Loss, Lags Revenue Estimates

5、Avient Expands rPC and PC Blends Portfolio for E&E Industry to EMEA

6、Origincorp Plans to Invest in Factories in Thailand and Kazakhstan

Recently, Origincorp Technology Co., Ltd. announced in a notice that it plans to invest about 441.6 million RMB to establish a wholly-owned subsidiary, Baina Packaging (Thailand) Co., Ltd., in Thailand, to invest in the construction of a two-piece can production line project in Thailand, including factory civil engineering, equipment relocation, new equipment purchase, and project working capital, etc. The project covers an area of about 78,144 square meters and is expected to be equipped with a two-piece can production line with a planned annual output of 700 million cans. In addition, Origincorp plans to invest about 646.52 million RMB to set up a wholly-owned subsidiary in Kazakhstan, which will build a two-piece can production line project in Kazakhstan. The project covers an area of about 90,000 square meters, and the construction is expected to take 18 months.

7、SABIC Launches Platform to Enable Efficient Manufacturability of Large Thermoplastic Parts

8、Launch of PET Circularity Test as Tool to Simulate Multiple Recycling Loops

Overseas Macro Market Information:

【Saudi Arabia Raises Crude Oil Prices for Asian Customers for the Second Consecutive Month, Showing Confidence in Oil Demand】

Saudi Arabia has raised crude oil prices for Asian customers for the second consecutive month, showing the confidence of the world's largest crude oil exporter in its own crude oil demand at a time when OPEC+ has increased production for many consecutive months. According to a price list seen by the media, Saudi Aramco, the country's oil giant, raised the price of Arab Light crude oil shipped to Asia in September by 1 USD per barrel, and the premium relative to the Oman-Dubai benchmark expanded to 3.2 USD, the highest level since April. Previously, a survey of refineries and traders showed that the expected price increase was 90 cents per barrel.

【Japanese Civil Servants' Salaries See the Largest Increase in 34 Years】

Japan's Personnel Authority recommended on Thursday that civil servants' average basic monthly salary be increased by 3.62% in the current fiscal year. This will be the largest increase since 1991. Coupled with the automatic salary increase that has taken effect, the total salary increase for civil servants this year will reach 5.1%. This may further strengthen the 良性 cycle of wage-price growth that the Bank of Japan has long sought, which is a prerequisite for continuing to tighten monetary policy.

【Mexican President Says "No Need" to Reach Bilateral Trade Agreement with Canada】

Mexican President Ximena Baum stated at a press conference on August 6 local time regarding bilateral trade negotiations between Mexico and Canada that there is no need for the two countries to reach a trade agreement.

【Japan and the United States Confirm a Trade Agreement with 15% Tariff】

Chief Cabinet Secretary Yoshimasa Hayashi of Japan: Ryosuke Akazawa has confirmed a trade agreement with the United States with a 15% tariff. This tariff does not apply to goods with existing tariff rates exceeding 15%, while goods with current tariff rates lower than 15% will be subject to 15% tariff; Japan seeks to quickly implement the trade agreement with the United States.

【General Motors Signs U.S. Domestic Rare Earth Magnet Supply Agreement】

U.S. rare earth magnet manufacturer Noveon Magnetics announced on August 6 local time that it has reached a multi-year supply agreement with General Motors to provide rare earth magnets for various auto parts of the latter. Noveon has started delivery in July.

【Honda's Net Profit Plummets from April to June Due to U.S. Tariffs】

Japan's Honda Motor Co., Ltd. released its financial report on the 6th, saying that due to the U.S. government's tariff policy, Honda's net profit from April to June this year was 196.6 billion yen (about 960 million RMB), a year-on-year decrease of 50.2%. Previously, after several rounds of negotiations, Japan and the United States reached a trade agreement, and the U.S. tariff rate on Japanese cars was reduced to 15%. Honda's Chief Financial Officer Eiji Fujimura said on the 6th that he has appealed to the Japanese government to quickly finalize and announce the relevant details of the tariff policy.

Price Information:

【The Central Parity Rate of RMB Against USD Reaches the Highest Since November 6, 2024】

The central parity rate of RMB against USD is reported at 7.1345, an increase of 64 points; the central parity rate of the previous trading day was 7.1409, the official closing price of the previous trading day was 7.1900, and the night session closing price of the previous day was 7.1836.

【Upstream Raw Material USD Market Prices】

Ethylene Asia: CFR Northeast Asia 820 USD/ton; CFR Southeast Asia 830 USD/ton.

Propylene Northeast Asia: FOB South Korea average price 735 USD/ton, up 5 USD/ton; CFR China average price 770 USD/ton, up 5 USD/ton.

North Asia frozen cargo CIF price: propane 511-513 USD/ton; butane 501-503 USD/ton.

South China frozen cargo CIF price for the first half of September: propane 560-570 USD/ton;butane 530-540 USD/ton.

Taiwan region frozen cargo CIF price: propane 511-513 USD/ton; butane 501-503 USD/ton.

【LLDPE USD Market Prices】

Film: 870-915 USD/ton (CFR Huangpu);

Injection molding: 940 USD/ton (CFR Dongguan);

【HDPE USD Market Prices】

Film: 910 USD/ton (CFR Huangpu);

Hollow: 855 USD/ton (CFR Huangpu);

Injection molding: 890 USD/ton (CFR Huangpu);

Pipe: 1030 USD/ton (CFR Huangpu);

【LDPE USD Market Prices】

Film: 1075-1095 USD/ton (CFR Huangpu);

Coating: 1280 USD/ton (CFR Huangpu).

【PP USD Market Prices】

Homopolymer: 910-965 USD/ton (CFR Huangpu);

Copolymer: 920-965 USD/ton (CFR Nansha);

Transparent: 1000-1055 USD/ton (CFR Huangpu);

Pipe: 1160 USD/ton (CFR Shanghai).