News
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Market News | South Korea Permanently Shuts 1.39Mt Ethylene Capacity; Domestic H2 Capacity Surplus Looms, PE Fluctuates RMB 50–200/MT, ABS Up RMB 130/MT
South Korean authorities approved a major restructuring plan on July 22: YNCC’s two Yeosu ethylene units (1.39Mt/year) will close permanently. The shutdown cuts YNCC’s ethylene capacity by over 60%, trimming nearly 10% of South Korea’s total national ethylene capacity at one stroke. Nearly all major South Korean petrochemical firms have suffered losses in the past two years. Their plants depend heavily on imported naphtha and lack cost advantages. The government targets voluntary ethylene capacity cuts of 2.7–3.7Mt/year, around 25% of its total 14.7Mt annual capacity. The target gap remains; aging crackers at KPIC and SK Geocentric are next candidates for shutdown. Domestically, only 1Mt new PE capacity went online in H1, far lower than last year. Middle East shipping disruptions and co... -
Market News | Geopolitical Risks Escalate; Shipping Volume in Strait of Hormuz Drops to Zero!
Qimei Zhenjiang raises prices by RMB 900/MT; ABS and PP spot prices jump RMB 400/MT, PE rises RMB 300/MT across the board today… US-Iran tensions flared up again! Shipping data shows traffic through the Strait of Hormuz has hit rock bottom. Statistics reveal no LNG tankers have been spotted transiting the strait since July 16. Iran claimed on the 19th that shipping volume in the Strait of Hormuz has fallen to zero, and any vessel attempting to cross will be targeted. Four ships tried to pass on that day: two were intercepted, and the other two aborted their voyage. The worsening strait crisis has sent shockwaves rippling through global energy markets. Brent crude rebounded from around USD 70 to nearly USD 90 within 20 days. Capital Economics issued an even more aggressive forecast... -
Market Report of Polypropylene (PP) & Polyethylene (PE)
Core Focus The US and Iran remotely signed a memorandum of understanding, opening a 60-day negotiation window. The US pledged to lift maritime blockades within 30 days, while Iran would negotiate strait management with Oman. However, the US military launched strikes on the same day, with both sides accusing each other of breaching the agreement. Iran’s Parliament Speaker stated that the strait “will not return to its former state”. Analysts commented that the signing of the memorandum marks a major breakthrough, yet its implementation outlook remains highly uncertain, and market optimism over peace talks should be treated with caution. PP Supply The operating rate of PP pellet plants stood at 66.25% (flat week-on-week), and that of PP powder plants hit 26.56% (flat week-on-w... -
South Korea Launches Anti-Dumping Probe on Chinese PVC; ABS & PP Jump Over RMB 300/Ton Amid Rallis
After India and Thailand, South Korea has initiated trade measures targeting Chinese PVC exports. Per South Korean media reports dated July 8, 2026, the Korea Trade Commission issued Announcement No. 2026-13, launching an anti-dumping investigation into suspension-grade PVC resins manufactured in China to verify dumping allegations and domestic industry injury. The probe focuses on two major Chinese chemical manufacturers: Tianjin Bohua and Wanhua Chemical. Official trade data shows China’s PVC export volumes to South Korea have surged drastically: 10,900 tons in 2023, 14,400 tons in 2024, and 40,400 tons in 2025. If dumping is confirmed in the final ruling, South Korea may impose anti-dumping duties on Chinese PVC. Previously, South Korea issued a final verdict on PVC paste resins impo... -
Market News: Thailand Launches Anti-Dumping Probe Into Chinese PVC; ABS Falls 580 This Week, PP & PS Keep Sliding！
Recently, the Department of Foreign Trade under Thailand’s Ministry of Commerce issued an announcement, launching an anti-dumping investigation into polyvinyl chloride (PVC) originating from Chinese mainland and Chinese Taiwan, in response to applications filed by domestic Thai enterprises. In recent years, China’s PVC exports have mainly flowed to Southeast Asia and neighboring regions. Driven by steady domestic demand and infrastructure development in Thailand, China’s PVC shipments to the country have grown continuously. Export volumes surged from 30,000 metric tons in 2022 to roughly 120,000 metric tons in 2025. Even so, Thailand only accounts for a small share of China’s total PVC exports, standing at 3% to 3.5%. Looking at China’s PVC export performance from January to May 2026, M... -
Early July Market Overview！
Crude oil dealt a heavy blow to the market at the start of July: WTI front-month futures fell 2.03%, while Brent front-month futures dropped 1.00%. For the full month of June, WTI slumped 18.52%, marking a roughly 30% cumulative loss in Q2 — its worst quarterly performance since 2020. The steep decline in crude oil dragged down the plastics sector, which failed to hold up. All plastic products closed lower across the board in June with drastic losses. PP raffia topped the monthly decline chart with a plunge of 20.96%, outperforming ABS, PC, PET and other varieties by a wide margin. Within just one month, the national average PP price tumbled from RMB 9,661/ton to RMB 7,954/ton, a drop of RMB 1,707/ton, representing an overall decline of 17.67%. South China recorded the sharpest slump, w... -
Rush to Fulfill Orders! European Heatwave Boosts Demand for Cooling Appliances, Upstream Plastic Demand to Rise！
Europe has recently been hit by an unprecedented heatwave. Multiple countries including Germany and the Czech Republic have set new June temperature records, while Hungary and Poland have issued heat warnings. Cooling products such as air conditioners, electric fans and portable ice makers are selling briskly overseas. According to CCTV Finance, smart display fans and compact mobile air conditioners have become top sellers on cross-border platforms this year. Many upstream manufacturers are operating at full capacity to rush order deliveries. The robust downstream demand is being passed along the plastic industrial chain. Structural parts of cooling appliances including fan casings and blades, air conditioner components, as well as water tanks and inner liners of ice makers are mostly... -
Industry Data: Vietnam, Malaysia Shift Purchases to China; May HDPE Exports Surge 426% Year-on-Year！
In May 2026, China’s domestic HDPE market maintained a net export pattern, marking the second consecutive month of this historic shift. Statistics show China’s total PE exports hit 516,000 tons in May, exceeding monthly imports of 508,900 tons for the first time. Among them, HDPE exports stood at 246,300 tons. Although the figure edged down month-on-month, it skyrocketed by an impressive 426.55% year-on-year. Geopolitical tensions in the Middle East persisted from April to May, disrupting shipping through the Strait of Hormuz. As a result, Vietnam, Malaysia and other countries that traditionally relied on Middle Eastern supplies rushed to source materials from China. Vietnam ranked first and Malaysia second among China’s top HDPE export destinations in May, consistent with the ranking r... -
Positive News for PVC Exports: India Mulls Extension of Tax Exemption on Petrochemical Imports！
Citing information from the Economic and Commercial Office of China’s Embassy in India, a June 9 report by India’s Economic Times quoted officials from the Ministry of Commerce and Industry of India stating that the country is considering extending the import tax exemption for petrochemical raw materials used in plastic and pharmaceutical manufacturing beyond June 30 to boost industrial development. In April this year, India scrapped import duties on 40 types of petrochemical products including PVC, with the preferential policy set to expire on June 30. If India extends the tax exemption beyond June 30, Chinese PVC supplies will enjoy stronger price competitiveness in the short run and drive up China’s PVC exports to India. For one thing, it will smooth out shipment schedules, prevent... -
Happy Dragon Boat Festival, United as One！
We carry forward the millennia-old Dragon Boat tradition as we march toward new global cooperation. Chemdo wishes all clients and partners peace and prosperity this festival. -
Market Update: LyondellBasell, BASF, Huntsman Shut Down & Divest Assets; PE, ABS, PC Prices Slump Further, PE Expected to Keep Falling Next Week!
Following workforce cuts and plant shutdowns announced by Dow Chemical and Celanese, major chemical players including LyondellBasell, BASF and Huntsman have rolled out business closures and asset divestments recently. LyondellBasell to Shut Italian PP Plant On June 11, local media reported that Houston-headquartered LyondellBasell (LYB) plans to permanently close its last polypropylene (PP) plant in Brindisi, Italy by the end of this year. The closure will affect 81 direct employees and another 150 staff across related supporting sectors. BASF Halts EPS Production in South Korea On June 8, BASF confirmed the shutdown of its expandable polystyrene (EPS) production unit at the Ulsan plastics complex in South Korea. All related production and operations are set to cease in mid-June 2026. H... -
Middle Eastern Isocyanate Producers Hit by Attacks！
Multiple media outlets reported that Israel launched a missile strike on June 8 against the Karoon Petrochemical Complex located in the Mahshahr Petrochemical Special Economic Zone in southwestern Iran. Chlorine-related units and storage facilities at the complex were damaged, while no casualties were reported on site. The Israeli military confirmed that the strike targeted multiple locations within the petrochemical zone. Operated by Karoon Petrochemical Company, the complex is under the umbrella of Persian Gulf Petrochemical Industries Company (PGPIC), Iran’s largest petrochemical holding group. It is Iran’s sole isocyanate manufacturer, running a 40,000-ton-per-year MDI plant and a 40,000-ton-per-year TDI plant. The facility also produces a range of other petrochemical pr...