Britain’s Biggest Chemicals Plant at Risk of Closure Amid Soaring Energy (Net Zero) Costs! Bayer’s Latest $9.3 Billion Deal! ZF Achieves First IPA Mass Production

International News Digest:

Raw Material News - Bio-Inspired Seashell Design Turns Recycled Plastics into Consistent, Strong Materials

Automotive News - ZF's First IPA Stabilizer Link Goes into Mass Production in Zhangjiagang

Electronics News - Plastics in Fuel Cells

Packaging News - German Multi-Layer Plastic Packaging Recycling Company Saperatec Falls into Insolvency

Medical News - $1.3 Billion Deal: Bayer and Kumquat Reach Global Exclusive License Agreement

Macroeconomic News - Trump Plans to Propose Joint Rare Earth Resource Development to Putin During U.S.-Russia Summit

Price Information - Ethylene Asia: CFR Northeast Asia $825/ton; CFR Southeast Asia $830/ton

Detailed International News:

1. Britain’s Biggest Chemicals Plant at Risk of Closure Amid Soaring Energy (Net Zero) Costs

Britain’s biggest chemical plant is at risk of closure after surging energy costs left it struggling for survival.

The Olefins and Polymers (O&P) plant at Grangemouth, in Scotland, which manufactures products used by hundreds of UK plastic companies, is under threat because of surging bills and taxes levied on British manufacturers, its owner Ineos warned.

2. German Multi-Layer Plastic Packaging Recycler Saperatec Files for Insolvency

Saperatec, a German recycler of multilayer flexible plastic packaging, has filed for insolvency.The company started operating its first recycling plant in Dessau, Saxony-Anhalt, in May 2024. The 17,000 tonnes/year facility had been under construction since 2022.The project was funded by the federal State of Saxony-Anhalt and the European Union as part of the Horizon 2020 research funding programme.

3.Bio-Inspired Seashell Design Turns Recycled Plastics into Consistent, Strong Materials

Georgia Tech researchers have developed a seashell-inspired material that could transform how recycled plastics are used, making them stronger, more consistent, and cheaper to produce.

4. $1.3 Billion Deal: Bayer and Kumquat Secure Global Exclusive License and Collaboration Agreement

Bayer AG recently announced that it is partnering with U.S.-based biotech firm Kumquat Biosciences to strengthen the research and development of drugs for pancreatic cancer, colorectal cancer, and lung cancer. The two parties have signed an exclusive global license and collaboration agreement to further develop and commercialize the biopharmaceutical company's KRAS-G12D inhibitor. Under the agreement, Kumquat Biosciences will be responsible for initiating and conducting Phase 1a clinical trials, while Bayer will take charge of subsequent development and commercialization efforts.

5. Finnish Insulation Material Manufacturer Finnfoam Invests €10 Million to Acquire a German Polyurethane Recycler

Finnfoam Group, a Finnish insulation material manufacturer, recently announced that its subsidiary Warmotech has acquired German competitor Bosig Baukunststoffe for more than €10 million. Finnfoam Group plans to increase the recycling capacity of this plant from 5,000 tonnes per year to 15,000 tonnes per year and add recycling capabilities for PET (Polyethylene Terephthalate) and polystyrene.

6. Plastics in Fuel Cells

Together with industry partners, SKZ and ZBT developed evaluation methods for polymer-based materials used in fuel cell systems. The goal was to support the selection of suitable plastics under application-relevant conditions and to systematically analyze material compatibility, emissions, and long-term performance.

7. ZF's First IPA Stabilizer Link Enters Mass Production in Zhangjiagang

ZF's Zhangjiagang Chassis Components Plant has achieved mass production of its first Injection Molding Assembly (IPA) stabilizer link in just 14 months. It is reported that the designed annual production capacity of this IPA production line is approximately 1.6 million units, with more projects scheduled to enter mass production in 2026. According to official statements, this breakthrough not only enriches ZF's product portfolio but also provides a new solution for the upgrade of new energy vehicle chassis components through its lightweight innovative design and advanced technology, demonstrating ZF's technological innovation capabilities in responding to competition in the new energy market.

Image Source: ZF Overseas

Macro Market Information:

【U.S. Treasury Secretary Pressures Fed to Cut Interest Rates and Reveals Details on Fed Chair Candidates】

U.S. Treasury Secretary Besant strongly urged the Federal Reserve to immediately initiate a new round of interest rate cuts, advocating for rates to be ​​150 to 175 basis points lower​​ than current levels. He projected a potential ​​50-basis-point rate cut in September​​. Additionally, he noted that there are ​​10 to 11 candidates​​ under consideration for the position of Federal Reserve Chair.

【Trump Plans to Propose Joint Rare Earth Development in Alaska to Putin During U.S.-Russia Summit】

Sources have revealed that Donald Trump plans to propose joint development of rare earth resources in Alaska to Vladimir Putin during the U.S.-Russia summit and lift the ban on U.S. exports of aircraft parts to Russia. The U.K. government believes this incentive measure "would be acceptable to Europe." If the meeting does not go smoothly, U.S. Treasury Secretary Janet Yellen stated that the U.S. may impose stricter sanctions or levy secondary tariffs.

【Some BOJ Board Members Propose Abandoning "Potential Inflation" Indicator】

Some board members of the Bank of Japan (BOJ) have proposed abandoning the use of the "potential inflation" indicator and shifting focus to overall inflation rates and inflation expectations. Observers believe this change may pave the way for an interest rate hike in October.

【Bank of Canada Maintains Monetary Policy Unchanged】

Minutes from the Bank of Canada's meeting show that given trade uncertainties and economic resilience, the bank has decided to keep its existing monetary policy unchanged. Some officials believe that the current magnitude of interest rate cuts is sufficient to address the moderate impact of tariffs on consumer prices.

Price Information:

CNY/USD Central Parity Rate

The central parity rate of the Chinese Yuan (CNY) against the U.S. Dollar (USD) was quoted at 7.1337, an increase of 13 basis points. The central parity rate on the previous trading day was 7.1350; the onshore CNY closed at 7.1755 at 16:30 (Beijing time) and ended the night session at 7.1775.

Upstream Raw Material USD Market Prices

Ethylene Asia: CFR Northeast Asia $825/ton; CFR Southeast Asia $830/ton.

Propylene Northeast Asia: FOB South Korea average $745/ton; CFR China average $780/ton.

Northeast Asia LPG (Liquefied Petroleum Gas) CIF (Cost, Insurance and Freight) prices: Propane $513-$520/ton; Butane $503-$510/ton.

South China LPG CIF prices for early September arrival: Propane $560-$570/ton; Butane $530-$540/ton.

Taiwan Region LPG CIF prices: Propane $513-$520/ton; Butane $503-$510/ton.

LLDPE (Linear Low-Density Polyethylene) USD Market Prices

Film grade: $860-$910/ton (CFR Huangpu)

Injection molding grade: $940/ton (CFR Dongguan)

HDPE (High-Density Polyethylene) USD Market Prices

Film grade: $900/ton (CFR Huangpu)

Blow molding grade: $855/ton (CFR Huangpu)

Injection molding grade: $890/ton (CFR Huangpu)

Pipe grade: $1025/ton (CFR Huangpu)

LDPE (Low-Density Polyethylene) USD Market Prices

Film grade: $1085-$1095/ton (CFR Huangpu)

Coating grade: $1280/ton (CFR Huangpu)

PP (Polypropylene) USD Market Prices

Homopolymer: $900-$965/ton (CFR Huangpu)

Copolymer: $910-$965/ton (CFR Nansha)

Film grade: $1030/ton (CFR Nansha)

Transparent grade: $980-$1055/ton (CFR Huangpu)

Pipe grade: $1130/ton (CFR Shanghai)