Market Flash

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

On July 14, the chemical tanker Stolt Magnesium, operated by Stolt Tankers, exploded and caught fire off the coast of Oman. The blast, attributed to an unknown external device, spread to the engine room. All crew members were safely evacuated with no casualties. The incident occurred near Qalhat, Oman, in an area previously flagged by UKMTO. Emergency measures were taken, and authorities are assessing the vessel's condition. Chemical tankers carry complex cargoes, increasing response difficulty.

• ChemicalTanker

Escalating tensions in the Middle East have led to the second closure of the Strait of Hormuz in months, creating a "zipper-like" pattern of repeated shutdowns and reopenings. Russia's ongoing diesel export ban compounds the disruption. These dual supply shocks have triggered violent swings in global energy markets, lifting China's energy and chemical futures across the board. International crude surged, with WTI rising over 9%. Fuel oil, asphalt, polypropylene, and other chemicals also posted s

• Hormuz
• Energy
• Chemical

Germany’s 15.5% mandatory drug discount may contain short-term insurance spending, but it risks weakening the country’s position as a European center for pharmaceutical launches, research and manufacturing.

• Germany
• healthcare reform
• drug pricing
• mandatory discount
• pharmaceutical industry

The Middle East conflict revealed that global food security rests on a fertilizer system highly concentrated around vulnerable gas supplies, production centers and maritime chokepoints.

• Middle East conflict
• fertilizer supply
• nitrogen fertilizer
• Strait of Hormuz
• global food security

Chevron’s decision to license its surfactant technology shows that the next phase of U.S. shale growth will depend less on drilling volume and more on chemistry-driven recovery improvements.

• Chevron
• oilfield chemicals
• surfactant technology
• shale oil
• enhanced oil recovery

The U.S. Department of Defense, through the Defense Logistics Agency, plans to procure 16,167 metric tons of battery-grade lithium carbonate for the National Defense Stockpile. The five-year fixed-price contract has a $300 million ceiling and a $1 million minimum guarantee. Bids are due July 17, with awards going to the lowest-priced technically qualified offeror. Deliveries will go to warehouses in New York, Nevada, Indiana, or Ohio. First-year purchases are estimated at 3,657 tons, declining t

• Lithium
• U.S.
• NationalDefenseStockpile

A simplified C-glycoside synthesis route highlights how process chemistry can reduce complexity in diabetes drug manufacturing.

• Diabetes
• C-glycosides

EU approval of cRG-I carrot extract highlights the shift from generic plant ingredients to standardized functional polysaccharides.

• Carrot
• rhamnogalacturonan

Europe’s probiotic sector is trying to move beyond wellness claims by framing wider use as an economic and public health opportunity.

• Probiotics

SDA-rich plant oils may not replace fish oil, but they could strengthen plant-based EPA-focused omega-3 formulations.

• Omega-3
• SDA
• stearidonic acid
• EPA
• NutraIngredients
• DHA

China’s active pesticide registrations show crop protection competition is expanding, especially around growth regulation and nutrition-linked products.

• Pesticides
• China
• crop protection

The Panama Canal’s tighter draft limits show that climate-driven shipping constraints are becoming a practical cost and delivery-risk factor for global chemical trade.

• Panama Canal
• shippers
• Neopanamax

India’s anti-dumping probe into PET film shows that its trade defense strategy is expanding from bulk commodities into more specialized chemical-material value chains.

• India
• Anti-Dumping
• polyethylene
• terephthalate
• China
• Singapore
• Thailand
• UAE