Global Chemicals & Materials News (July 14–20, 2025) :Key Incidents, Price Trends, and Green Tech

  Factory Incidents & Emergencies

Fire at Dongyue Organosilicon Plant (China, July 20)

• Location: Dongyue Economic Development Zone, Huantai County, Zibo, Shandong

• Details: A fire broke out at Shandong Dongyue Organosilicon Materials Co., Ltd. (Stock Code: 300821.SZ), producing thick black smoke. Firefighting units responded swiftly. No casualties were reported; the cause is under investigation.

• Impact: As a major producer of methyl chlorosilane (600,000 t/year), Dongyue’s disruption may cause short-term supply shortages of upstream and downstream products (e.g., silicone rubber, silicone oil, silicone resin), pushing up global organosilicon prices and affecting electronics, automotive, and construction sectors.

Covestro Factory Fire & Force Majeure (Germany, July 16)

• Details: Covestro declared force majeure after a fire, halting production of TDI, polyether polyols, PUD, and its chlorine plant.

• Impact: Already tight global isocyanate (TDI/MDI) supply worsened. TDI prices surged mid-July, and prices are expected to remain high through the end of the month.

Maintenance, Shutdowns & Layoffs

Press Glass Summer Shutdowns (Poland / Croatia / Lithuania)

• Tczew, Poland: Full shutdown from July 14–27, directly impacting this week’s deliveries.

• Varaždin, Croatia & Kaunas, Lithuania: Shutdowns or 50% capacity cuts starting July 21, affecting upcoming weeks.

• Impact: Reduced supply of IGUs and architectural glass in Europe; customers are advised to place orders in advance.

Wacker Chemie Announces Layoffs (Germany, July 19)

• Reason: Lowered full-year guidance due to tariff uncertainties and weak demand; layoff plan announced (scale undisclosed).

• Trend: European chemical firms continue to face high energy costs and import competition, prompting cost-cutting measures.

Prices & Market Supply Trends

Organosilicon Prices Rising

• The Dongyue fire may lead to supply shortages of methyl chlorosilane and derivatives, putting upward pressure on prices.

Isocyanate Prices Surge

• Covestro’s shutdown caused TDI prices to spike from July 16. MDI is also impacted, with elevated prices expected throughout July.

Other Chemical Price Trends

• Methanol: Price increased due to geopolitical tensions and maintenance.

• PVC: Oversupply led to price pressure.

• Crude Oil: WTI August contract at $67/bbl, easing chemical production costs.

Export Price Trends

• Chinese chemical export prices rose 3.7% YoY in July, while import prices declined, reflecting global supply-demand mismatches.

Green Chemistry & Technology

Eco-Friendly Functional Coatings Launched

• Solvent-free coatings released by companies and universities, REACH-compliant, with strong weather and corrosion resistance.

• Applications: Automotive, electronics, construction.

• Outlook: Global market to grow at 5.2% CAGR (2025–2030), led by Asia-Pacific.

Accelerated Investment in Green Chemicals

• Focus on bio-based plastics, degradable polymers, and catalyst recycling.

• Drivers: Carbon neutrality policies, EU CBAM, and shifting customer demand.

Breakthroughs in MOF Catalyst Technologies

• Metal-organic framework catalysts show superior efficiency in hydrogenation, dehydrogenation, and polymerization.

• Impact: Enable greener chemical processes and enhance selectivity for bio-based chemical manufacturing.

Trade, Tariffs & Geopolitics

US Tariff Impact Continues

• Since April, the US has imposed 104% tariffs on Chinese goods, affecting chemical exports.

• The Dongyue fire may accelerate regionalization of organosilicon supply chains.

EU Chemical Trade Surplus Shrinks

• April surplus dropped to €20.4 billion. Continued weakening is expected into July due to rising production costs and reduced competitiveness.

China Tightens Export Controls

• New export restrictions on battery cathode materials and non-ferrous metal tech. The Dongyue incident may further disrupt organosilicon export flows.

Summary & Outlook

• Key Events This Week: Dongyue fire, Covestro shutdown, and Press Glass shutdowns were the most impactful developments.

• Affected Segments: Organosilicon, isocyanates (TDI/MDI), architectural glass.

• Mid-Term Trends: Green chemical investments and catalyst innovation show strong momentum, but supply chain risks from trade tensions and emergencies remain high.