Market Flash

Wanhua Chemical’s US unit has agreed to pay $7.75 million to settle a class action lawsuit alleging MDI/TDI price-fixing, pending court approval. This follows settlements by BASF ($3 million) and Covestro LLC ($7 million), bringing total payouts to $17.75 million. The litigation began in 2018, with plaintiffs accusing major producers of manipulating supply. While parent companies were dismissed on jurisdictional grounds, US subsidiaries continued defending. Dow and Huntsman remain defendants. Se

• WanhuaChemical
• MDI
• TDI

Mitsubishi Chemical is transferring its entire 60% stake in Taiwan’s 105,000-tonne-per-year KMC MMA business to CPDC as rapid Chinese capacity growth intensifies competition and reshapes Asian production networks.

• Mitsubishi Chemical
• MMA Monomer
• Taiwan Chemical Industry
• Capacity Restructuring
• Asian MMA Market

European petrochemical producers are accelerating the closure of aging cracker assets as regional competitiveness wanes. TotalEnergies will shutter its 550,000 mt/year Antwerp ethylene cracker by end-2027, citing expiring supply contracts and market headwinds. Dow plans to permanently close its Böhlen, Germany, cracker and associated units in Q4 2027, alongside its Barry, UK, silicone plant. Shell is reviewing its European portfolio, targeting shutdowns of two crackers in the Netherlands and UK.

• TotalEnergies
• Dow
• Shell
• EuropeanPetrochemicals
• FineChemicals

Rhine water levels are approaching historic lows, sharply reducing barge capacity and raising freight costs while exposing BASF, Covestro and Evonik to feedstock delays and potential production constraints.

• Rhine River Drought
• German Chemical Logistics
• BASF Ludwigshafen
• Chemical Supply Chain
• Low Water Risk

Chemical producers across Europe, Asia and the United States are permanently removing aging and high-cost capacity as the industry shifts from broad expansion toward consolidation and regional restructuring.

• Chemical Plant Closures
• Capacity Rationalization
• European Chemicals
• Petrochemical Restructuring
• Global Chemical Industry

A wave of refinery disruptions in the Middle East and Russia has shifted the market’s concern from crude scarcity to insufficient processing capacity, sending Europe’s diesel crack spread to a record USD 74.66 per barrel.

• Diesel Crack Spread
• European Fuel Market
• Refinery Disruptions
• Global Diesel Supply
• Energy Feedstocks

A Ukrainian drone strike forced a crude-processing unit offline at Russia’s 260,000-barrel-per-day Perm refinery, intensifying pressure on Russian domestic fuel availability and the wider global diesel market.

• Perm Oil Refinery
• Ukraine Drone Strike
• Russian Refining
• Diesel Supply
• Energy Geopolitics

Wanhua’s reported USD 200-per-ton increase signals tighter polyurethane feedstock conditions in Southeast Asia, although weak downstream margins may limit the rise in actual transaction prices.

• anhua Chemical
• MDI Price Increase
• TDI Price Increase
• Southeast Asia
• Polyurethane Market

The latest strike on the Ryazan refinery could deepen pressure on Russia’s domestic fuel system, although the damaged units and actual production loss have yet to be confirmed.

• Ryazan Oil Refinery
• Ukraine Drone Strike
• Russian Fuel Supply
• Energy Infrastructure
• Refining Market

Saudi Aramco’s 400,000-bpd Jazan refinery has reportedly shut after an attack damaged its integrated power complex and tank farm, although the proposed mid-August restart remains an unconfirmed third-party estimate.

• Saudi Aramco
• Jazan refinery
• refinery shutdown
• Red Sea supply
• Houthi attack

Japan has extended its BPA anti-dumping investigation to February 19, 2027, leaving duties undecided but prolonging uncertainty over prices, contracts and Northeast Asian resin-feedstock trade.

• Japan anti dumping
• bisphenol A
• chemical trade
• South Korea exports
• Taiwan suppliers

On July 27, global oil prices posted their steepest single-day drop in two months after the U.S. and Iran signaled a de-escalation in tensions. WTI crude settled at $82.61 per barrel, down 7.5%, while Brent crude closed at $88.36 per barrel, an 8.7% decline. The sell-off continued on July 28, though at a slower pace, with WTI near $80 and Brent around $84. The easing of geopolitical risk—previously tied to potential supply disruptions through the Strait of Hormuz—prompted capital to exit energy

• ChemicalIndustry
• Oil
• Energy
• Chemical

On July 21, 2026, the U.S. Department of Commerce issued final anti-dumping (AD) and countervailing duty (CVD) rates on Chinese L‑Lysine imports. AD rates range from 73.55% to 139.83%, while CVD rates are between 48.21% and 82.11%. Combined, some companies face duties up to 188%, severely impacting price competitiveness. The investigation began after a May 2025 petition by the Coalition for Fair Trade in Lysine. Final AD rates vary by exporter, with higher rates for certain trading partners. The

• L-Lysine
• AD
• CVD

The 10% temporary import surcharge imposed by the U.S. under Section 122 of the Trade Act of 1974 expires on July 24. To avoid a tariff gap, the USTR is advancing new tariffs under Section 301, targeting 60 trading partners with rates of 10% or 12.5%. USTR Greer expects to unveil these measures soon, covering nearly 99% of U.S. trade. Meanwhile, a proposed $30 billion reciprocal tariff reduction between China and the U.S. remains under negotiation, with final product lists pending.

• U.S.
• Tariff
• 301Tariffs
• FineChemicals

South Korea’s Ministry of Trade, Industry and Energy has approved the Yeosu No.1 Restructuring Plan for the petrochemical complex. The initiative, submitted by Yeochun NCC, Lotte Chemical, Hanwha Solutions, and DL Chemical, will permanently retire 1.39 million metric tons of ethylene capacity by shutting down YNCC’s No. 2 and No. 3 crackers. Lotte Chemical will merge its Yeosu naphtha cracking center with YNCC to form a new joint venture, equally owned by the three companies. The plan includes K

• FineChemicals
• Ethylene
• YNCC
• SouthKorea
• Lotte
• Hanwha
• DL

Merck’s Lipfendra becomes the first oral PCSK9 inhibitor with LDL reductions approaching 60%, although its projected $5 billion market will depend on payer access and proof of long-term cardiovascular benefit.

• Merck
• oral PCSK9
• cholesterol treatment
• FDA approval
• cardiovascular drugs

Truelink’s reported $1 billion acquisition of Lyons Magnus is a bet that foodservice ingredients, beverage production and healthcare nutrition can be combined into a larger and more defensible B2B platform.

• Lyons Magnus
• food ingredients
• nutrition beverages
• private equity
• industry consolidation

LG Chem’s first semiconductor stripper has entered mass production at Amkor and cuts a specific residue-removal process by about 50%, giving the company a credible foothold in the higher-margin advanced-packaging materials market.

• LG Chem
• semiconductor stripper
• electronic chemicals
• advanced packaging
• Amkor Technology

• ChungLienOil
• BaP

Honeywell completed its acquisition of Johnson Matthey’s catalyst technology business for £1.325 billion in cash, down from the initial £1.8 billion agreed in May 2025. The price dropped £475 million due to delays in sustainable solutions licensing and weaker catalyst supply profitability. The deal, which took 14 months, closed on July 17 after receiving Chinese antitrust approval. The acquired business, employing 1,900 people, covers catalysts for refining, petrochemicals, and renewable fuels,

• Honeywell
• JohnsonMatthey
• Catalyst