Trump Implements New Tariffs; GNFC’s No.2 TDI Unit Resumes Operation; Dow Launches New Additive

International News Roundup:

Raw Material News: Prevented Ocean Plastic Secures EU Food-Grade Certification for Recycled PP

Automotive News: Porsche, BASF and BEST Jointly Complete Groundbreaking Pilot for Chemical Recycling of Automotive Waste

Additive News: Dow Chemical Launches Fluorine-Free Polymer Processing Additive, Focusing on Film Applications

Exhibition News: Vioneo to Make Debut at K 2025, Showcasing Fossil-Free PE and PP Solutions

Macroeconomic News: Tariff Announcement! Trump Declares: Effective from October 14

Price News: Ethylene Asia: CFR Northeast Asia $815/ton; CFR Southeast Asia $810/ton

Details of International News:

1. Rebound and Restart! India’s GNFC 50,000-tonne TDI Unit Resumes Operation, Alleviating Industry Supply Anxiety Post-Leak

Plastmatch learned on September 30 that Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) announced that its No.2 toluene diisocyanate (TDI) unit in Dahej, India, resumed operation on September 28. The restart follows an emergency shutdown on September 19 after a sudden leak was reported; necessary inspections and rectification measures have now been completed. The No.2 TDI unit has an annual production capacity of 50,000 tonnes.

2. Prevented Ocean Plastic Secures EU Food-Grade Certification for Recycled PP

Prevented Ocean Plastic’s recycled polypropylene (PP) for food contact applications has been approved by the European Food Safety Authority (EFSA). This marks the first time recycled PP has met the EU food safety standard (EU 2022/1616), which came into effect in 2022, replacing the previous EU regulation (EU 282/2008) and incorporating revised, stricter evaluation criteria. For instance, the allowable limits for harmful substances such as toluene, chlorobenzene, and methyl salicylate after purification have been reduced by up to 50%.

3. Porsche, BASF and BEST Jointly Complete Groundbreaking Pilot for Chemical Recycling of Automotive Waste

Plastmatch reported on September 30, citing Porsche sources, that Porsche AG, BASF SE, with support from technical partner BEST Bioenergy and Sustainable Technologies GmbH, have successfully completed a joint pilot recycling project targeting mixed waste from end-of-life vehicles. The project verified the feasibility of recovering high-performance plastics from automotive shredder residue (ASR) — a type of waste composed of mixed shredded components such as foam, plastic, film, and paint particles, primarily derived from end-of-life vehicles. Currently, such complex material mixtures can only be processed through thermal energy recovery.

4. Dow Chemical Launches Fluorine-Free Polymer Processing Additive, Focusing on Film Applications

Dow Chemical has recently launched a polymer processing additive suitable for blown film and stretch film packaging. The group stated that this product aims to help processors maintain efficient production while meeting increasingly stringent regulatory requirements and environmental needs. Dow Chemical noted that its new Dowsil silicone-based additive is designed to replace fluoropolymer processing additives — a category currently being phased out due to customer demands and regulatory pressures.

5. Vioneo to Showcase Fossil-Free PE and PP Solutions at K 2025

Vioneo, a pioneer in fossil-free plastics, announced that it will make its debut at K 2025 and showcase breakthroughs in the production of high-performance fossil-free polyethylene (PE) and polypropylene (PP) solutions. This milestone marks the beginning of a revival in the plastics industry, setting new standards for performance and sustainability. Data shows that even under the most ambitious scenarios, recycling and reuse strategies are expected to meet only about 50% of global plastic demand by 2050. To sustainably meet the remaining demand, Europe must accelerate alternative production pathways, such as green methanol-to-olefins (MTO), to produce fossil-free virgin plastics on a large scale. Now, Vioneo is at the forefront of bringing this solution to market, marking a new chapter in the revival of plastics.

6. Tariff Announcement! Trump Declares: Effective from October 14

On September 29 (local time), U.S. President Trump announced that a 10% tariff will be imposed on imported softwood logs and lumber, and an additional 25% tariff on imported kitchen cabinets, bathroom vanities, and upholstered wood products. The new tariffs will take effect on October 14, with some rates set to increase further starting January 1 next year. Earlier, on September 25, Trump announced via his social media platform “Truth Social” that the U.S. would impose a new round of high tariffs on various imported products starting October 1. The measures include a 50% tariff on kitchen cabinets, bathroom vanities, and related building materials; a 30% tariff on imported furniture; and an additional 100% tariff on patented and branded pharmaceuticals.

7. Cefic Releases Q2 2025 European Chemical Industry Trends Report

In September 2025, the European Chemical Industry Council (Cefic) released its Q2 European Chemical Industry Trends Report. The report shows that the European chemical industry remained mired in negative growth in H1 2025, completely reversing the short-lived weak recovery seen in 2024. It further reveals that the competitiveness of the European chemical industry has been systematically undermined, and its crisis is deep-rooted. The industry’s return to negative growth in H1 2025 not only reverses the weak recovery momentum of 2024 but also exposes a deep-seated crisis in which its competitiveness is being systematically eroded. This crisis is not a cyclical fluctuation caused by the chemical industry cycle but a “perfect storm” triggered by high energy costs, structural weak demand, and imbalances in the global trade pattern.

Overseas Macroeconomic Market:

1. U.S. Announces New Tariffs on Building Materials, Furniture, Etc.; Chinese Foreign Ministry: No Winners in Tariff and Trade Wars

Foreign Ministry Spokesperson Guo Jiakun hosted a regular press conference. Regarding U.S. President Trump’s announcement of new tariffs on imported building materials, kitchen cabinets, bathroom products, vanities, and upholstered furniture, Guo Jiakun stated, “There are no winners in tariff wars or trade wars, and protectionism leads nowhere.”

2. French Inflation Accelerates Slightly, Remains Far Below ECB’s 2% Target

French inflation has picked up slightly but remains well below the European Central Bank’s (ECB) 2% target, with service prices rising at a faster pace and energy price declines narrowing. France’s statistics office said consumer prices in the euro zone’s second-largest economy rose 1.1% year-on-year in September, compared with a 0.8% increase in August. Economists had forecast a 1.3% rise. Although euro zone inflation is rising, policymakers believe it will return to the target level over the medium term they focus on.

3. Key Points of RBA Interest Rate Decision

① The market generally expects the Reserve Bank of Australia (RBA) to keep the Official Cash Rate (OCR) unchanged at 3.60%.② Attention will focus on the RBA’s stance on future monetary policy; the market expects the RBA may indicate that future interest rate cuts will “depend on data”. Currently, the median market expectation is for another rate cut in November.③ Attention will also be paid to the RBA’s views on the labor market and inflation.

Price Information:

1. RMB/USD Central Parity Rate Hits Two-Week High

The central parity rate of RMB against the U.S. dollar was reported at 7.1055, up 34 pips; the central parity rate of the previous trading day was 7.1089, the official closing price of the previous trading day was 7.1204, and the night session closing price was 7.1218.

2. Upstream Raw Material USD Market Prices

Ethylene Asia: CFR Northeast Asia 815 USD/ton; CFR Southeast Asia 810 USD/ton.

Propylene Northeast Asia: FOB South Korea average 750 USD/ton; CFR China average 785 USD/ton.

North Asia frozen cargo CIF: Propane 517-518 USD/ton (Note: The original “517-5218 USD/ton” is corrected to “517-518 USD/ton” for rationality); Butane 533-534 USD/ton.

South China frozen cargo CIF for late October: Propane 577-587 USD/ton; Butane 557-567 USD/ton.

Taiwan region frozen cargo CIF: Propane 517-518 USD/ton; Butane 533-534 USD/ton.

3. LLDPE USD Market Prices

Film: 895-900 USD/ton (CFR Huangpu);

Injection Molding: 1010 USD/ton (CFR Dongguan);

4. HDPE USD Market Prices

Film: 910-980 USD/ton (CFR Huangpu);

Blow Molding: 855-865 USD/ton (CFR Huangpu);

Injection Molding: 830-850 USD/ton (CFR Huangpu);

Pipes: 1010 USD/ton (CFR Huangpu);

5. LDPE USD Market Prices

Film: 1050-1110 USD/ton (CFR Huangpu);

Coating: 1280 USD/ton (CFR Huangpu);

6. PP USD Market Prices

Homopolymer: 855-915 USD/ton (CFR Huangpu);

Copolymer: 865-890 USD/ton (CFR Nansha);

Film Grade: 1010-1030 USD/ton (CFR Huangpu);

Transparent Grade: 985-1050 USD/ton (CFR Huangpu);

Pipe Grade: 1100 USD/ton (CFR Shanghai);