News

China — Wanhua Chemical and Global MDI Producers Announce Price Increase Date:  January 2, 2026 Event:  Wanhua Chemical, along with other global MDI producers including BASF and Huntsman, announced price increases for MDI (Methylene Diphenyl Diisocyanate) citing rising raw material costs and tighter supply conditions. Wanhua Chemical is also accelerating capacity expansion projects to reinforce its global leadership position. Impact Pathway:  Higher MDI prices affect downstre

Date:  December 23, 2025 Executive Summary The European Union’s decision to introduce stricter controls on imported plastics —aimed at preventing market distortion and protecting the struggling recycling industry—represents one of the most consequential developments  for the global chemicals and materials industry in recent months. This is not a company-specific news item, nor a marginal regulatory adjustment. It is a structural policy intervention  affecting: polymer produce

1. European Union — Proposes Stricter Controls on Imported Plastics to Support Recycling Industry Date:  December 23, 2025   Event: The European Union announced plans to introduce stricter controls on imported plastics  and enhanced scrutiny to support its struggling recycling sector, which has seen significant capacity losses due to cheap imports and plant closures. Measures include new customs codes, stricter documentation requirements, audits of recycled plastic claims, an

Date of policy milestone:  July 1, 2026 Authority:  Ministry of Ecology and Environment of China (MEE) 1. Overview of the policy China has announced that from July 1, 2026 , the polyurethane foam industry will be prohibited from producing products using HCFC-141b as a blowing agent .This move is part of China’s obligations under: the Vienna Convention for the Protection of the Ozone Layer the Montreal Protocol on Substances that Deplete the Ozone Layer the national plan to ph

For more than two decades, China has served as the central engine of the global base chemicals and materials market—both as the world’s largest demand center and its most important supply hub. As the industry moves into 2025–2026, however, this structure is undergoing a structural rather than cyclical transformation . Across the industry, a clear contrast is emerging: China appears increasingly cautious, inward-looking, and difficult to commit to, while Vietnam and parts of S

1. Event Overview 1.1 Ford Cancels LGES Battery Deal Date : Mid-December 2025 Details : Ford announced the cancellation of its $6.5 billion  EV battery supply contract with South Korea’s LG Energy Solution (LGES), initially scheduled for 2026–27. Additionally, Ford terminated a $11.4 billion  joint venture with SK On. Implications : This move reflects automakers’ strategic reassessment of EV production lines and investment scale. It creates short-term pressure on battery manu

1. South Korea — LG Chem Submits Petrochemical Restructuring Plan Date:  December 19, 2025 Event: LG Chem formally submitted a petrochemical restructuring plan to the South Korean government in response to industry-wide overcapacity, margin compression, and policy-driven consolidation requirements. While specific asset actions were not disclosed, the filing aligns with government guidance encouraging capacity rationalization across ethylene, propylene, and downstream derivati

Based on the latest developments of the Thailand–Cambodia border conflict last week, the potential impact on the chemicals and materials industry can be analyzed across four dimensions: supply chain, pricing, investment, and regional strategy. 1. Supply Chain Impact (1) Logistics and Transportation Disruptions Border closures and port restrictions : Thailand has blocked some border crossings and restricted port transport of fuel and other logistics, directly affecting cross-b

1. Event Overview The Chinese government announced that, starting January 1, 2026 , certain lithium sulfuryl chloride (Li-SO2Cl2) batteries  will no longer be classified under controlled chemical or dual-use regulations, provided they meet specific conditions. Declaration of sulfuryl chloride content remains mandatory. Li-SO2Cl2 batteries are high-energy-density, long-cycle-life primary batteries  used in: Industrial and military applications Specialized IoT and remote device

1. China — Relaxation of Lithium Thionyl Chloride Battery Trade Controls Date:  December 12, 2025 Event: China announced it will ease import and export controls on certain lithium thionyl chloride batteries from January 1, 2026. Products below specified thresholds will no longer be regulated as controlled chemicals or dual-use items, although accurate declaration of sulfuryl chloride content remains mandatory. The move reduces regulatory friction across industrial, IoT, and s

Introduction In China today, a small domestic brand lipstick can retail at RMB 139  in Watsons or SEPHORA, while a relatively unknown shampoo can sell for as much as RMB 1,290 . At the same time, e-commerce platforms are flooded with low-priced products of dubious authenticity, leaving consumers confused and distrustful. This is not an isolated phenomenon; it reflects a structural disruption in China’s beauty and personal care market —a market that is at once chaotic and full

As the year draws to a close, executives in the chemicals and materials industry face a critical question: how can they review the past year’s performance while providing a sound basis for strategic decisions over the next five to ten years? With heightened raw material price volatility, supply chain restructuring, rapidly evolving downstream demand, and the continuous emergence of new materials and technologies, relying solely on fragmented market information can cause compa

ExxonMobil — Permanent Shutdown of Jurong Steam Cracker Date:  December 4, 2025 Event:  ExxonMobil confirmed it will permanently shut down one of its older ethylene steam crackers on Jurong Island, Singapore , beginning in March 2026 and completing the full closure by June 2026.The decision reflects global ethylene/polyolefin overcapacity, sustained margin pressure, and structurally lower utilization of naphtha-based crackers in Asia. Impact Pathway: Accelerates restructuring

I. Macro Landscape: Weak Recovery, Strong Divergence, and Supply Chain Reconfiguration Global economic conditions in 2025 were characterized by slow recovery, high cost pressures, and accelerated regionalization of supply chains , shaping the chemicals and materials industry in several structural ways: 1. Diverging Demand Patterns Consumer downstream sectors remained soft , weighing on plastics and basic chemicals. Technology-driven sectors grew counter-cyclically , including

Global Wacker Chemie — Global Workforce Reduction Amid European Chemical Downturn Date:  November 27, 2025 Event:  Wacker Chemie announced a workforce reduction of over 1,500 employees by 2027, citing high energy costs, weak demand across Europe, and structural competitiveness challenges in the region. Impact Pathway: Strengthens Wacker’s cost base in a depressed European chemical environment; signals deeper structural contraction in Germany’s chemical industry; may reduce ou

Source: BASF News Release, 19 November 2025 1. Event Overview (Verified) BASF announced an expansion of its APG (alkyl polyglucoside) production capacity at Bangpakong, Thailand, aiming to meet the rapidly growing demand for renewable surfactants in Asia and globally. APGs are plant-derived surfactants (glucose + fatty alcohol) widely used in: Personal care (shampoos, cleansers, cosmetics) Household cleaning Industrial surfactants This expansion is a key step in BASF’s global

Asia-Pacific Sumitomo Chemical — Acquisition of Taiwan AUECC (Semiconductor Chemicals) Date:  November 20, 2025 Event: Sumitomo Chemical signed an agreement to acquire 100% equity of Taiwan-based AUECC, expanding its semiconductor wet-process chemical portfolio and establishing its first manufacturing presence in Taiwan. Impact Pathway: Strengthens Sumitomo’s position in advanced semiconductor materials; enhances local supply capability to foundries in Taiwan; increases compe

In 2025, geopolitical risk has secured the spot as the top threat to global supply chains for the third consecutive year (Allianz Risk Barometer 2025: 58 % of respondents, far ahead of cyber attacks and natural disasters). Below are the shocks that have already happened or are highly probable in 2025, together with the actual losses inflicted on companies (all figures from latest 2025 reports and corporate earnings releases): Risk Event 2025 Impact (Already Occurred or Expect

Executive Summary In 2025, the chemical industry faces a growing supply-chain risk that has received relatively little public attention but could reshape the competitive map over the next 5–10 years. Unlike headline shocks (e.g., energy crises), this risk is more insidious — concentrated in long-tail, hard-to-replace raw materials whose production is vulnerable to geopolitical conflict, regulatory pressure, and logistics disruption. Key materials such as battery-grade cobalt

1. Current Market Landscape and Structural Drivers Europe Under Pressure Industry sentiment in Germany and broader Europe continues to deteriorate, with weak orders, declining capacity utilization, and elevated operating costs.High and volatile energy  and carbon  costs remain the main structural burden for large chemical producers. High-Cost Structural Challenge European producers face sustained disadvantages in natural gas, power, carbon pricing, and labor—eroding competiti