Two World-Class Ethylene Projects Delay Commissioning! MOFA Responds to Mexico's Tariff Hikes! Audi Sells Stakes

International News Overview

Raw Materials News: Two world-class ethylene projects delay commissioning

Auto News: Audi plans to sell Italdesign to U.S. tech firm UST

Electronics News: Dawn Co., Ltd. acquires SK Group-related assets for RMB 516 million

Packaging News: Nelipak acquires Merrill's Packaging to expand global medical packaging business

Construction News: AkzoNobel completes sale of Indian liquid coatings business

Macroeconomic News: Mexico to impose additional tariffs on China and other countries; MOFA responds

Details of International News

1. U.S. ITC Issues Partial Final Determination in 337 Investigation into PVDF Resins

The U.S. International Trade Commission (ITC) announced a partial final determination in the 337 investigation (Investigation No.: 337-TA-1439) concerning Certain Polyvinylidene Fluoride (PVDF) Resins. It declined to review the initial determination (No.19) issued by the administrative law judge on November 18, 2025, and approved a name change as requested by the petitioner. Solvay Specialty Polymers, USA LLC will be corrected to Syensqo Specialty Polymers, USA LLC, and Solvay Specialty Polymers Italy S.P.A. to Syensqo Specialty Polymers Italy S.P.A.

2. Dawn Co., Ltd. Acquires SK Group-related Assets for RMB 516 Million

On the evening of December 10, 2025, Dawn Co., Ltd. announced plans to acquire an 80% stake in Ningbo SK Synthetic Rubber Co., Ltd. from SK Discovery Investment Hong Kong Limited (SK Hong Kong), a subsidiary of South Korea's SK Group, using its own funds of RMB 516 million. Ningbo SK specializes in the R&D and production of Ethylene Propylene Diene Monomer (EPDM), a core raw material for Dawn's dynamic vulcanization platform products.

3. Two World-Class Ethylene Projects Delay Commissioning

Recently, Chevron announced that two world-class petrochemical facilities being advanced by Chevron Phillips Chemical (CP Chem), its joint venture with Phillips 66, are expected to start operations in 2027. Originally scheduled for commissioning in 2026, both projects have been delayed. Developed in cooperation with QatarEnergy, the two projects include: an $8.5 billion ethylene and High-Density Polyethylene (HDPE) complex in Orange, Texas, U.S.; and a $6 billion integrated petrochemical base in Ras Laffan, Qatar. The Texas project features a 2.1 million-ton/year ethane cracker and two 1 million-ton-class HDPE units. The Qatar project is equipped with a 2.1 million-ton/year ethane cracker and two HDPE units with a total capacity of 1.68 million tons/year. Upon completion, the two projects will add 4.2 million tons/year of ethylene and 2.68 million tons/year of HDPE capacity to the current global market with oversupply and weak demand. Leveraging cheap ethane feedstock from U.S. shale gas and Qatar's North Field, they will form a cost competitive advantage.

4. AkzoNobel Completes Sale of Indian Liquid Coatings Business

AkzoNobel announced the sale of its Indian liquid coatings subsidiary, AkzoNobel India Limited (ANIL), to Mumbai-based conglomerate JSW Group. The €1.4 billion transaction was first announced in June this year. It covers AkzoNobel's liquid coatings business operated under the Dulux brand in India. AkzoNobel will retain control of its powder coatings business and R&D centers in India.

5. Audi Plans to Sell Italdesign to U.S. Tech Firm UST

Audi, a brand under the Volkswagen Group, has reached an agreement with U.S. technology company UST to sell a majority stake in its Italian design and engineering subsidiary, Italdesign Giugiaro SpA. The transaction is subject to regulatory approval. In a statement on December 10, Audi said Lamborghini, its high-performance automotive brand, will "retain a significant shareholding in the Italian design company." Audi emphasized it will continue as Italdesign's long-term strategic partner and key customer. Headquartered in California, U.S., UST stated it will inject its expertise in digital engineering, automotive electronics, and artificial intelligence into the collaboration. Specific financial terms of the transaction have not been disclosed.

6. Nelipak Acquires Merrill's Packaging to Expand Global Medical Packaging Business

On December 11, medical packaging supplier Nelipak announced the completion of its acquisition of Merrill's Packaging. Merrill's Packaging specializes in custom thermoformed packaging solutions for the medical, pharmaceutical, and life sciences sectors. Headquartered in Burlingame, California, its core business includes providing custom thermoformed packaging for medical devices, pharmaceuticals, life sciences, and other high-demand applications, along with supporting products and services such as die-cut bags, mounting cards, value-added design, R&D, and mold development. With production facilities in Burlingame, California, and Alajuela, Costa Rica, both plants are ISO 13485 certified and equipped with ISO Class 8 cleanrooms.

7. Teleflex Splits Business: Medical and OEM Segments Sold for Over $2 Billion

Teleflex recently announced the signing of definitive agreements to sell its Original Equipment Manufacturer (OEM) business, acute care division, and interventional urology division to two separate buyers. UK-based Intersurgical Ltd., a designer and manufacturer of anesthesia and respiratory care equipment, will take over the acute care and interventional urology businesses. Montagu of London and Kohlberg of Mount Kisco, New York, mid-market private equity firms, will jointly acquire the OEM business. Disclosed by Teleflex, the total cash value of the transactions is $2.03 billion, with the final amount subject to adjustments at closing. Expected to close in the second half of 2026, the agreements will see Teleflex receive approximately $1.5 billion for the OEM business and $530 million for the acute care and interventional urology businesses. After accounting for certain harvest adjustments, Teleflex expects a net after-tax gain of approximately $1.8 billion.

Overseas Macroeconomic Market Information

IEA Lowers Global Crude Oil Surplus Forecast for the First Time Since May

Due to strengthened demand and slowing production growth, the International Energy Agency (IEA) lowered its forecast for global crude oil oversupply this year and next. By 2026, global crude oil supply will exceed demand by 3.815 million barrels per day, a decrease of 231,000 barrels per day from the previous month's forecast. The adjustment reflects multiple factors, including OPEC+'s decision to pause production increases, slightly lowered supply expectations for the group's competitors, and a more optimistic outlook for global crude oil consumption.

Lavrov: Russia Focuses on Eliminating Root Causes of Ukraine Crisis

On December 11 local time, regarding the mediation of the Ukraine situation, Russian Foreign Minister Sergei Lavrov stated that talks between Russia and the United States aim to establish lasting peace. Currently, Europe only cares about a ceasefire and may use the breathing space to continue providing military aid to Ukraine, but Russia focuses on eliminating the root causes of the crisis.

MOFCOM: China's Goods Trade Grows by 4.1% in November

China's Ministry of Commerce (MOFCOM) stated that the growth rate of the country's goods trade reached 4.1% in November, maintaining year-on-year growth for 10 consecutive months. Facing a complex and severe external environment this year, China's foreign trade has bucked the trend, achieving stable volume and improved quality, and demonstrating strong vitality through steady growth. In the first 11 months, China's total import and export of goods reached RMB 41.21 trillion, a year-on-year increase of 3.6%. Currently, uncertainties and instabilities in the global economic and trade fields have increased significantly, and the industrial and supply chains are undergoing profound adjustments, which is a common challenge for all countries including China. It is believed that China's foreign trade will overcome difficulties and continue to inject stable momentum into global economic and trade development.

Mexico to Impose Additional Tariffs on China and Other Countries; MOFA Responds

According to Beijing Daily, Foreign Ministry Spokesperson Guo Jiakun hosted a regular press conference. A reporter from EFE asked about Mexico's Senate passing a new import and export tariff bill, which will impose tariffs ranging from 5% to 50% on certain products from several Asian countries including China starting next year. Guo stated that the competent Chinese authorities have responded to the matter, and further details are available for review. He emphasized that acting against the trend of economic globalization and engaging in protectionism is detrimental to others and oneself. It is hoped that Mexico will correct its erroneous practices at an early date, work with China in the same direction, and jointly safeguard the overall interests of bilateral economic and trade relations.

Yen Hits Record Low Against RMB, Exacerbating Japan's Inflation Risks

The yen fell to a record low against the offshore RMB this week, triggering concerns about imported inflation in Japan, while the Bank of Japan's policy normalization process remains slow. The yen also weakened against the onshore RMB, hovering near its lowest level since 1992.

Price Information

The central parity rate of RMB against the U.S. dollar was reported at 7.0686, an increase of 67 basis points. The central parity rate of the previous trading day was 7.0753, the official closing price was 7.0638, and the night session closing price was 7.0661.

U.S. Dollar Market Prices of Upstream Raw Materials

CFR Northeast Asia: $745/ton; CFR Southeast Asia: $725/ton

Northeast Asia Propylene: FOB South Korea average $715/ton; CFR China average $750/ton

North Asia LPG (CIF): Propane $558-560/ton; Butane $613-615/ton

South China LPG (CIF, early January): Propane $582-592/ton; Butane $572-582/ton

Taiwan Region LPG (CIF): Propane $558-560/ton; Butane $613-615/ton

U.S. Dollar Market Prices of LLDPE

Film: $790-810/ton (CFR Huangpu)

Injection Molding: $980/ton (CFR Huangpu)

U.S. Dollar Market Prices of HDPE

Film: $880-895/ton (CFR Huangpu)

Injection Molding: $780/ton (CFR Huangpu)

Blow Molding: $820-825/ton (CFR Huangpu)

Pipe: $1000/ton (CFR Huangpu)

U.S. Dollar Market Prices of LDPE

Film: $990-1015/ton (CFR Huangpu)

Coating: $1050-1180/ton (CFR Qingdao)

U.S. Dollar Market Prices of PP

Injection Molding: $785/ton (CFR Huangpu)

Copolymer: $830-855/ton (CFR Nansha)

Film Grade: $970-985/ton (CFR Huangpu)

Transparent Grade: $1065/ton (CFR Huangpu)

Pipe: $1100/ton (CFR Shanghai)