News
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Dramatic Reversal of U.S. Tariff Policy: Structurally Differentiated Impacts on China’s Plastics and Chlor-Alkali Industries
Introduction From February 20 to 24, 2026, the U.S. tariff policy underwent drastic adjustments. The impact of this tariff fluctuation on China’s chemical industry market showed structural differentiation, and the core transmission path has shifted from “direct trade impact” to “downstream demand suppression and global trade flow restructuring”. I. Event Description From February 20 to 24, 2026, the U.S. tariff policy experienced a dramatic reversal: on February 20, the U.S. Supreme Court ruled that the 10% “reciprocal tariff” previously imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) was illegal and revoked it; however, on February 24, the U.S. government immediately imposed a 15% temporary ta... -
Spring Festival Period PE Market Trend and Post-Holiday Outlook
During the 2026 Spring Festival in February, most domestic petrochemical enterprises maintained normal production. Some enterprises reduced their operating load due to the sharp rise in crude oil prices during the holiday, but the overall operating rate remained at a reasonable level. Affected by continuous production during the holiday, delayed post-holiday logistics recovery and the advance arrival of some imported resources (originally scheduled to arrive in mid-to-late February) at ports before and during the holiday, the accumulation of petrochemical and social inventories accelerated significantly. Data shows that as of February 24, the total inventory of Sinopec and PetroChina (covering general plastics including PE, PP, a small amount of ABS, PS and EVA) reached 940,000 tons, a... -
A Prosperous Start to the Working Year
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Warm wishes for a joyful and peaceful Spring Festival
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PV Industry: Lightweighting and Weather Resistance Drive Material Upgrades
Currently, the photovoltaic (PV) industry is in a structural adjustment phase driven by overcapacity, with accelerating industry consolidation. However, long-term demand remains optimistic. Going forward, technological innovation and cost control will continue to drive the expansion of diversified application scenarios. First-generation EVA encapsulant films have long dominated the market due to their mature manufacturing processes and low costs. Nevertheless, their limitations in weather resistance and resistance to potential-induced degradation (PID) have spurred the industry to pursue superior alternative solutions. POE encapsulation materials, boasting excellent water vapor barrier properties and high electrical resistivity, have become the material of choice for high-efficiency tec... -
Brazilian premium‑grade rPET flake demand plunges as supply chains shift
SÃO PAULO (ICIS)–Brazilian demand for premium‑grade recycled polyethylene terephthalate (rPET) flakes is set to continue weakening as the competitiveness of virgin material strengthens and supply‑chain dynamics shift. Premium flake demand has slumped versus virgin Pellet makers are cutting external flake buying Quality-premium spreads have collapsed Significant capacity has been built for non‑pellet‑verticalized premium‑grade rPET flake lines in recent years. That capacity was added primarily to serve premium rPET applications, especially food‑grade pellets. Recyclers equipped to produce flakes with polyvinyl chloride (PVC) contamination below 50 ppm – a key benchmark for premium quality – and similarly low levels of other contaminants are now struggling to place material. DEMAND PATT... -
Vioneo Plans to Build a Methanol-to-Polyolefins Plant in China
On January 16, European chemical startup Vioneo announced its decision to abandon the construction of a 300,000-ton-per-year green methanol-to-polyolefins plant in Europe and instead invest in a similar project in China. Vioneo stated that “by being able to source green methanol locally, it helps formulate favorable pricing schemes for customers while improving supply chain efficiency, reducing CO2 emissions, and accelerating product launch timelines.” To this end, to establish a more efficient production facility in China will serve as its first commercial-scale green methanol-based polyolefin production plant. Previously, Vioneo had planned to build its first commercial-scale plant in Antwerp, Belgium, with an investment of approximately 1.5 billion euros. The facility wou... -
PP/PE Industry Capacity Pattern Reshaped: Green Transition and Project Upgrade as Core Themes
China’s PP/PE (polypropylene, polyethylene) industry is undergoing a capacity reshuffle, with key developments including the commissioning of BASF’s Zhanjiang polyethylene plant and progress on PetroChina Dalian Petrochemical’s new polyolefin projects driving the sector toward larger-scale, high-end production. BASF (Guangdong)’s 500,000-ton/year polyethylene plant, contracted by Huanqiu Contracting & Engineering Corporation, has successfully started operations and produced qualified products. The project, a key Sino-German cooperation initiative witnessed by both countries’ premiers, is BASF’s largest overseas investment to date. Located in Zhanjiang’s Donghai Island Petrochemical Industrial Park, the plant adheres to global construction st... -
PVC Industry’s Expansion Cycle Ends, 2026 Supply-Demand to Improve Marginally
China’s polyvinyl chloride (PVC) industry has concluded its nearly eight-year capacity expansion cycle, with no new capacity plans for 2026, entering a structural adjustment phase. Coupled with overseas high-cost capacity withdrawal and export support, supply-demand dynamics are expected to improve marginally, verified by authoritative institutions. Supply-side data shows steady growth in domestic PVC capacity and output from 2018 to 2025. 2025 saw 2.2 million tons of new capacity added, with ethylene-based PVC proportion rising to 28%. Only minimal new capacity is pending globally in 2026, marking the end of expansion. The 2025 PVC market correction led to industry-wide losses, with acetylene-based PVC hitting a historic low. Despite a year-end rebound, prices remain at the bot... -
How significant is the cancellation of export tax rebates for the PVC market?
On January 9, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Adjusting the Export Tax Rebate Policy for Photovoltaic and Other Products. The product list explicitly includes PVC powder, unplasticized PVC, and plasticized PVC in the scope of adjustment. The core impact clause concerns PVC exports: starting from April 1, 2026, the value-added tax (VAT) export tax rebate for PVC powder will be canceled. At present, the export tax rebate rate for this category stands at 13%. The far-reaching impact of this policy on the PVC market has attracted widespread attention from the industry and the capital market. Li Min, an analyst at Zhuochuang Information, stated that this policy will directly increase export cost... -
TPU Film Extrusion: Compound Selection vs Finished Film Supply
Application Note TPU Film Extrusion: Compound Selection vs Finished Film Supply In TPU film projects, customers often face an early decision that is rarely discussed in depth: whether to purchase TPU film compounds for in-house extrusion, or to source finished TPU films directly. While both approaches are common, they represent fundamentally different allocations of process responsibility and risk. Application Context TPU films are used across bedding protection, functional laminations, medical covers, and packaging applications. Depending on production scale, equipment capability, and stability requirements, some manufacturers prefer to extrude films internally using compound, while others rely on externally supplied finished films. Compound vs Finished Film: A Structural Differe... -
When Standard TPU Grades Fail in Film Extrusion Applications
Application Note When Standard TPU Grades Fail in Film Extrusion Applications TPU film extrusion projects often begin with standard grades that appear suitable during initial trials. In many cases, samples pass basic evaluation, only to encounter instability, surface inconsistency, or performance drift during continuous production. These failures are rarely random and usually indicate structural limitations of standard TPU grades. Application Context TPU films are widely used in bedding protection, medical covers, breathable laminations, and functional packaging. While standard TPU grades are often sufficient for short trial runs, film extrusion places unique demands on melt stability, surface uniformity, and long-term process consistency. Why Standard Grades Often Reach Their Lim...