Songwon to Build New Production Base; GM Cuts EV Investments; IMF Raises Global Economic Growth Forecast

International News Guide:

Raw Materials News - LG Chem to Halt High-Density Polyethylene Production at Daesan, South Korea

Automotive News - General Motors Cuts EV Investments, Books $1.6 Billion Loss

Construction News - Avient Partners with ReForm to Promote Composite Solutions in Construction Sector

Macro News - IMF Raises This Year’s Global Economic Growth Forecast to 3.2%

Price Information - CNY Midpoint Rises Past 7.10 Against USD, First Time Since Last November

International News Details:

1. Deepening Global Layout! Songwon to Fully Fund and Build Saudi OPS Production Base

Songwon Industrial Co., Ltd. recently announced a major new investment, planning to establish a state-of-the-art One-Pack Systems (OPS) production base in the Kingdom of Saudi Arabia (KSA). Scheduled for completion in 2028, this new advanced production base will be fully owned by Songwon and primarily manufacture a range of Songnox-branded One-Pack Systems (OPS) products—high-performance additive compounds that support efficient production of polyolefin resins. By expanding local production capacity and enhancing supply chain flexibility, the plant will enable the company to better serve the fast-growing polyolefin market in the Middle East.

2. LG Chem to Halt High-Density Polyethylene Production at Daesan, South Korea

According to Plastmatch, on October 15, a customer letter seen by Platts (under S&P Global Commodity Insights) on October 14 revealed that LG Chem Ltd. plans to shut down its high-density polyethylene (HDPE) plant in Daesan, South Korea. While the company stated that more details on the timeline are still pending, the announcement follows sustained weak trading activity in Far East Asia.

“South Korea’s petrochemical industry is currently facing severe profitability challenges, leading to structural adjustments and business redeployment across the sector,” the company said.

3. General Motors Cuts EV Investments, Books $1.6 Billion Loss

Shares of General Motors (GM.N) are falling as the expiration of a key tax credit forces the company to scale back its EV investment plans. On Tuesday, General Motors disclosed that it is conducting a “reassessment of our EV capacity and manufacturing footprint.”

After the U.S. federal government eliminated a key tax credit, General Motors said it would book a $1.6 billion charge and reduce its planned EV investments. According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Tuesday, the company stated that $1.2 billion of this charge is related to adjustments to its EV production capacity. The remaining $400 million will primarily cover contract cancellation fees and business settlements associated with EV investments.

“In addition, we are continuously evaluating our EV capacity and manufacturing footprint, including investments in battery component manufacturing,” General Motors said in the filing. The company also noted that “there is a significant possibility that we will have to recognize additional charges.” General Motors will release its third-quarter earnings next week.

4. Ghanaian Youth Students Launch “PlastiFund” Project, Connecting Recycling Enterprises with Orphanages for Plastic Recycling

In response to Ghana’s plastic pollution issue (with only a 2-5% recycling rate for low-density polyethylene), Ghanaian students Lila Favilli and Arshia Lakhiani launched the “PlastiFund” project. By connecting recycling enterprises with orphanages, the project builds a circular economy model of “collecting plastic for income.”

Currently covering 10 institutions and engaging over 1,100 children, the project has collected more than 1,200 pounds of plastic. After processes such as cleaning, shredding, and melting, the plastic is converted into recycled pellets for producing products like garbage bags. The project not only generates income for orphanages and cultivates environmental awareness among children but also reduces raw material costs for enterprises, achieving a win-win situation for both environmental protection and the economy.

The two students are exploring catalytic pyrolysis technology to convert plastic into fuel and plan to expand the project to more communities, emphasizing the concept of “collaborating to solve global problems.”

5. Polykemi Plans 50% Capacity Expansion in US to Meet Growth Demand from Construction, Automotive Sectors

Swedish compound manufacturer Polykemi Group plans to increase the capacity of its U.S. plant by 50% by 2027, driven by stronger-than-expected growth in the North American market. The company launched production at its Gastonia, North Carolina plant in mid-2023 and has since hired new sales and support staff in the U.S. and Mexico.

The plant currently operates two extrusion lines with a combined annual capacity of approximately 7,000 tons. The company plans to add a third production line as early as 2026.

6. Avient Partners with ReForm to Promote Composite Solutions in Construction Sector

According to Plastmatch, on October 15, Avient Corporation announced a successful collaboration with key customer ReForm. ReForm specializes in designing and manufacturing cost-effective continuous fiber-reinforced thermoplastic (CFRTP) composite solutions that can be adapted to various application scenarios of concrete infrastructure in the construction market.

ReForm uses its patented Continuous Forming Machine (CFM)—a thermoplastic pultrusion technology—to process CFRTP laminates into continuous profiles. By integrating an in-line thermoforming process, CFM enables the design of curved, complex shapes, and multi-geometry structures, overcoming the limitations of traditional pultrusion technology (which typically only produces straight profiles). Leveraging these capabilities, ReForm is expanding the application of CFRTP, utilizing the material’s lightweight and corrosion-resistant properties to support the next generation of concrete infrastructure.

7. POLYVANTIS Opens New Technology Center in Shanghai

POLYVANTIS announced the opening of a new technology center in Shanghai, China. This launch marks a significant milestone in the company’s development, underscoring its commitment to innovation, customer partnerships, and sustainable growth.

Overseas Macro Market:

【U.S. Treasury Secretary Sends Dovish Signals; Working-Level Talks Continue; China Reaffirms “Fight or Negotiate” Stance on Tariff War】

According to the Global Times: After the U.S. threatened to impose a 100% tariff on Chinese goods starting November 1, U.S. Treasury Secretary Janet Yellen recently claimed that the situation has “eased significantly” and that the tariff hike on China may not happen. Facing the U.S.‘s volatile and changeable statements on China-related economic and trade policies, a spokesperson for China‘s Ministry of Commerce reaffirmed on the 14^th: “China‘s stance on the tariff war and trade war has always been consistent. If they want to fight, we will fight to the end; if they want to negotiate, the door is always open.”

【Key Takeaways from Powell‘s Speech on October 14: Hints at One More Rate Cut This Year; Weak Hiring Pressures Unemployment Rate】

Federal Reserve Chair Jerome Powell hinted that officials may stop shrinking the balance sheet in the coming months, acknowledging “some signs” of tightness in money markets.

Powell said that bank reserves remain “abundant,” but officials are closely monitoring indicators to determine when to stop the runoff.

Powell stated that the outlook for inflation and employment has seemingly changed little since the September FOMC monetary policy meeting, though he emphasized that the labor market is showing increasing signs of weakness.

Powell said that even without government data during the shutdown, “downside risks to employment appear to have risen.”

He noted that alternative data reviewed by officials cannot replace official government statistics.

Powell left the door open to a rate cut in October, reiterating that officials have no easy choices as they balance the risk of ending the fight against inflation too early and the danger of supporting the labor market too late.

The market‘s reaction to Powell‘s remarks was most evident in U.S. dollar swap spreads, which widened after Powell hinted at a possible end to balance sheet reduction. Following Powell‘s speech, the Bloomberg Dollar Index fell to its daily low, while U.S. Treasury yields declined.

【U.S. Government Shutdown Enters 14^th Day; White House Vows to Continue Layoffs】

As the U.S. government shutdown enters its 14^th day with no solution in sight, the White House Office of Management and Budget (OMB) vowed to continue laying off government agency staff while ensuring payments to military personnel and federal law enforcement officers.

“The Office of Management and Budget (OMB) is fully prepared to respond to the Democrats‘ intransigence,” the OMB posted on social media on Tuesday (October 14). “Pay the troops, pay law enforcement, keep cutting staff, and wait.”

【IMF Raises This Year‘s Global Economic Growth Forecast to 3.2%】

The International Monetary Fund (IMF) released its latest World Economic Outlook Report on the 14^th, projecting that the global economy will grow by 3.2% in 2025—0.2 percentage points higher than the July forecast this year. For 2026, the growth forecast remains unchanged at 3.1% from the July projection.

Price Information:

【CNY Midpoint Rises Past 7.10 Against USD, First Time Since Last November】

The central parity rate of USD/CNY was quoted at 7.0995, up 26 pips; the central parity rate of the previous trading day was 7.1021, the official closing price of the previous trading day was 7.1411, and the overnight closing price was 7.1380.

【Upstream Raw Materials USD Market Prices】

Ethylene Asia: CFR Northeast Asia $785/ton; CFR Southeast Asia $780/ton.

Propylene Northeast Asia: FOB Korea average price $750/ton; CFR China average price $775/ton.

North Asia frozen cargo CIF price: propane $440-443/ton; butane $466-469/ton.

South China frozen cargo CIF price for early November: propane $522-532/ton; butane $522-532/ton.

Taiwan region frozen cargo CIF price: propane $440-443/ton; butane $466-469/ton.

【LLDPE USD Market Prices】

Film: $850-890/ton (CFR Huangpu);

Injection molding: $9,425/ton (CFR Huangpu).

【HDPE USD Market Prices】

Film: $900-940/ton (CFR Huangpu);

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

Injection molding: $850/ton (CFR Huangpu);

Pipe: $1,010/ton (CFR Huangpu).

【LDPE USD Market Prices】

Film: $1,050-1,105/ton (CFR Huangpu);

Coating: $1,100-1,280/ton (CFR Huangpu).

【PP USD Market Prices】

Injection molding: $860-915/ton (CFR Huangpu);

Copolymer: $850-900/ton (CFR Nansha);

Film grade: $1,020/ton (CFR Huangpu);

Transparent: $1,010-1,125/ton (CFR Huangpu);

Pipe: $1,100/ton (CFR Shanghai).