China has reduced its import tariffs on EU dairy imports from the provisional rates imposed in December. The European Commission and The European Dairy Association (EDA) had lobbied Beijing in opposition to the duties ranging from 21.9% to 42.7%, which were put in place by China’s Ministry of Commerce last year following an anti-dumping probe launched in 2024. On Friday (30 January), the Commission notified the relevant European dairy bodies of the tariff cuts to 11.7% on the top side, with some EU comp ...

Core Viewpoint - Mexico has initiated an anti-dumping investigation into US apple imports due to claims of price discrimination affecting local producers [1][2] Group 1: Investigation Details - The investigation was prompted by a request from Unifrut, representing over 85% of Mexico's apple production [1] - The investigation period is set from April 2024 to March 2025, with damage analysis extending back to April 2022 [3] - The probe targets apples classified under tariff item 0808.10.01, with US imports constituting 97.5% of Mexico's total apple imports during the investigation period [3] Group 2: Impact on Domestic Industry - US apple imports increased by 9% during the investigation window and by 30% over the full damage analysis period [4] - The "dumping" of US apples has led to a 14% decrease in local apple prices since 2022, forcing domestic producers to sell below cost [4] - Revenue from domestic sales fell by 9.9% during the investigation period, with operating margins at minus 13.8% [5] Group 3: Ministry's Response - The Ministry of Economy considers the union's observations on domestic price suppression to be reasonable, indicating sufficient evidence of negative impacts on the domestic industry [6] - The Ministry will notify identified importers, exporters, and the US government regarding the investigation [6]

Group 1 - The China-Japan trade tensions are escalating, with Japan warning that China's export curbs could impact over 40% of its exports to Japan [1] - China's new punitive measures include controls on dual-use items, likely affecting shipments of semiconductors and rare earth materials to Japan's defense sector [3][6] - An anti-dumping investigation into Japanese dichlorosilane imports has been initiated by China, which is critical for semiconductor manufacturing [6][7] Group 2 - The investigation into dichlorosilane imports is expected to conclude by January next year, with a possibility of extension [7] - Preliminary evidence indicates a 31% cumulative price decline in dichlorosilane imports from Japan from 2022 to 2024, despite an overall increasing volume trend [8] - Shares related to rare earths surged across Asia-Pacific markets following the announcement, with notable increases in companies like Toyo Engineering Corp and Lynas Rare Earths Ltd [11] Group 3 - The vague nature of China's announcement has led to speculation about potential de-escalation, with some analysts suggesting it may be a strategy to pressure Japan for concessions [9][10] - The ongoing tensions have caused jitters in the stock market, particularly after a strong start to the year for regional stocks, indicating a potential overheating situation [12] - China has been steadily retaliating against Japan through various measures, including trade restrictions and military threats [13]

Core Viewpoint - China has imposed import duties on EU pork for five years, with rates ranging from 4.9% to 19.8%, which are lower than the preliminary tariffs announced earlier [1][3]. Group 1: Import Duties and Investigation - The import duties are a result of an anti-dumping investigation initiated by China in June 2024, claiming that EU pork was being sold at unfairly low prices [2][3]. - Preliminary duties were set in September 2024, with rates between 15.6% and 62.4%, and the final assessment was due on December 16, 2024 [3]. - The Ministry of Commerce stated that EU pork imports were causing substantial damage to China's domestic industry [3]. Group 2: Responses from Stakeholders - Importers will receive refunds if provisional deposits exceed the final duty rates, and they can request periodic reviews during the duty period [4]. - The European Commission criticized China's investigation as being based on questionable allegations and insufficient evidence, and is reviewing compliance with WTO rules [5]. - Major EU pork producers, such as Danish Crown, Vion, and Litera Meat, were identified in the investigation, with Danish Crown expressing support for free trade [6].

Financial Data and Key Metrics Changes - POSCO Holdings recorded consolidated revenue of KRW 17.3 trillion and operating profit of KRW 640 billion for Q3 2025, showing improvement in operating profit for three consecutive quarters [1][2] - The operating profit margin for the quarter was 6.6%, with a recovery in operating profit despite a 1.7% drop in revenue due to declining sales prices [2][11] - The average mill margin remained comparable to the previous quarter, supported by proactive cost-cutting efforts [1][12] Business Line Data and Key Metrics Changes - In the steel segment, operating profit increased to KRW 585 billion in Q3 2025, despite a 4.9% increase in production volume and a decline in sales prices [10][11] - Rechargeable Battery Materials saw a significant narrowing of losses quarter-over-quarter, with cathode sales volume increasing ahead of the IRA benefit sunset [2][15] - POSCO E and C faced substantial losses due to the Shinansan line accident, with a one-time cost of KRW 288.1 billion recognized in Q3 [17] Market Data and Key Metrics Changes - The domestic steel market in Korea is normalizing, although demand continues to slow, and imports have flooded the market prior to the AD ruling [2][11] - The proportion of exports in Q3 rose to approximately 49.3%, indicating a shift in sales strategy [12] - Overseas steel profits are expected to experience a moderate decline, particularly in Mexico and India, while performance in Indonesia and Vietnam remains steady [14] Company Strategy and Development Direction - The company is focused on creating a safe workplace through group-wide safety management innovations following recent safety incidents [4][5] - POSCO Group plans to return to normal profitability levels in 2026 after accounting for one-off losses from the Shinansan incident [4][17] - Future investments will prioritize environmental projects and overseas capacity additions, particularly in high-growth markets like the U.S. and India [41][42] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the steel market in 2026, anticipating overall profit increases compared to the current year [13] - The company is preparing for the implementation of the EU's CBAM and is developing countermeasures to mitigate potential impacts [28][29] - Management highlighted the importance of adapting to changing market conditions and maintaining competitiveness through strategic investments [40][41] Other Important Information - POSCO Holdings has completed 63 portfolio management projects generating KRW 1.4 trillion in cash since early 2024 [9] - The company is actively restructuring its operations and focusing on safety improvements following recent incidents [5][8] Q&A Session Summary Question: What is the outlook for the steel market in Q4 and next year? - Management indicated that the impact of anti-dumping measures will be difficult to assess immediately, but they expect some positive effects in the latter part of the year [24][25] Question: How will the company respond to carbon-related costs and regulations? - The company plans to develop guidelines to address the EU's CBAM and will continue efforts to reduce carbon footprints [28][29] Question: What are the investment plans following recent portfolio management? - Management stated that generated cash will be used for business growth and managing non-leverage assets, with ongoing reviews for potential acquisitions [66][67] Question: What is the current situation regarding lithium demand and pricing? - Lithium demand is expected to increase significantly, with projections for EVs and ESS driving growth [68][75] Question: How will the company handle the impact of the EU's duty-free quota reduction? - The company plans to negotiate individually with countries under FTA agreements and adjust sales strategies to mitigate impacts [77][78]

Core Points - China's commerce ministry has initiated an anti-dumping investigation into pecans imported from the United States and Mexico, indicating rising global trade tensions [1] - The investigation is expected to conclude by September 25, 2026, with preliminary evidence suggesting that U.S. and Mexican pecans were sold at prices lower than their normal value, causing material injury to China's domestic industry [2] - China has also launched an investigation into Mexico's proposed tariffs on various goods, which it claims will harm trade partners and reduce investment confidence [3] Trade Relations - The Chinese commerce ministry criticized unilateralism and protectionism, emphasizing the need for countries to oppose such measures collectively [4] - Analysts suggest that China's actions are a response to Mexico's planned tariffs, viewing it as Mexico yielding to U.S. pressure [5] - By including both U.S. and Mexican pecans in the same investigation, China may create leverage for Mexico to gain a competitive advantage in its market [6] Economic Context - The trade relations between China and the U.S. are becoming increasingly unpredictable, with China adding six U.S. firms to its export control and unreliable entity lists [6]

Summary of Key Points from Conference Call Records Industry Overview - **Industry**: Chemical Industry, specifically focusing on MDI (Methylene Diphenyl Diisocyanate) and companies like DuPont and Huntsman - **Key Events**: US Department of Commerce's preliminary determination in the anti-dumping investigation of MDI from China Company-Specific Insights Huntsman Corporation (HUN) - **MDI Import Data**: Approximately 400kt of MDI was imported last year, with around 75% sourced from China [1] - **Preliminary Dumping Rates**: Covestro and Wanhua faced dumping rates of 376.12%, while other Chinese exporters faced rates of 511.75% [1] - **Future Expectations**: A favorable outcome in the investigation could lead to a final ruling by February or March next year, effective for five years [1] DuPont (DD) - **Investor Day Insights**: DuPont's business remains compelling with potential upside on a Sum-of-the-Parts (SOTP) basis [2] - **Stock Rating**: Maintained a "Buy" rating ahead of the spin-off, with a target price of $93.00, indicating a potential upside of 19.1% from the current price of $78.10 [2][29] - **Financial Flexibility**: The divestiture of the AM&C segment is expected to improve financial flexibility for share repurchases and M&A activities [2] Ecovyst (ECVT) - **Stock Rating Change**: Downgraded from "Buy" to "Neutral" following the announcement of the AM&C segment sale [2] - **Future Outlook**: The remaining Ecoservices business is expected to generate steady cash flow with high earnings predictability [2] Economic Indicators - **Housing Market**: Housing starts and building permits fell by approximately 9% and 4% month-over-month in August, indicating potential weakness in the construction sector [3] - **Retail Sales**: Retail sales increased by 0.6% month-over-month in August, exceeding expectations [9] - **Industrial Production**: Increased by 0.1% month-over-month in August, with capacity utilization remaining flat at 77.4% [9] Other Notable Developments - **LIRC Update**: Zijin Mining commenced production at the Tres Quebradas project in Argentina, with a capacity of 20ktpa LCE [9] - **OLN and Mitsui**: The Blue Water Alliance joint venture will end by the end of the year, allowing OLN to focus on long-term structural opportunities [9] - **Huntsman Product Launch**: Huntsman's Advanced Materials segment launched a new range of ARALDITE epoxy adhesives that are free from BPA and classified CMR substances [9] Market Performance - **Stock Performance YTD**: Notable declines in stock prices for companies like Huntsman (-41.0%) and Dow (-39.0%) indicate challenges in the chemical sector [30] This summary encapsulates the critical insights and developments from the conference call records, providing a comprehensive overview of the chemical industry and specific companies involved.

Core Viewpoint - Shares of China's domestic legacy chipmakers surged following Beijing's announcement of an anti-dumping investigation into imported US semiconductors, marking a significant step in the country's efforts to develop domestic alternatives for analogue integrated-circuit chips [1][6]. Group 1: Market Reaction - SG Micro's shares surged by the maximum 20% limit, closing at 87.42 yuan (US$12.26) on Shenzhen's ChiNext board [2]. - 3Peak's shares rose by 9.7% to 163.2 yuan at closing, while Novosense Microelectronics gained 10.79% [4]. Group 2: Company Profiles - SG Micro has a diverse chip portfolio that includes industrial, consumer electronics, communications, and automotive applications, with power management chips being its largest product line. The company announced plans to seek a Hong Kong listing [3]. - 3Peak specializes in analogue signal chain and power management chips, contributing to its stock price increase [4]. Group 3: Industry Context - The anti-dumping investigation targets commodity interface ICs and gate driver ICs, both types of analogue chips produced on 40nm and larger nodes, following a complaint from the Jiangsu Semiconductor Industry Association [6]. - Analogue chips are essential for processing real-world signals and are widely used in various applications, including power management and automotive systems, typically manufactured using mature production nodes [5].

Group 1 - European countries exhibit a sense of "victory" over China, seeking to acquire rare earth resources while simultaneously attempting to suppress China through restrictive measures, reflecting a typical "bullying" behavior of Western nations [1] - The EU Ambassador to China emphasized the urgency of resolving Europe's rare earth needs within a month, warning that failure to do so could severely impact high-level meetings between China and the EU [3] - Despite engaging in friendly talks with China, the EU has raised tariffs on Chinese electric vehicles to 35% and restricted Chinese medical devices from entering the European market, indicating a dual strategy of maintaining a friendly facade while implementing sanctions [3] Group 2 - Western countries do not view China as an equal partner, focusing instead on the United States, which they regard as a dominant force, even at the cost of their own national interests [5] - European nations continue to criticize China for alleged military support to Russia, despite China's assurances of non-support, highlighting a contradiction in their diplomatic approach [5] - The historical context of Western imperialism in China contributes to a persistent arrogance among European nations, leading them to adopt aggressive commercial policies against China [7] Group 3 - In response to Europe's disregard for China's goodwill, China has implemented measures such as banning European companies from participating in government procurement projects exceeding 45 million RMB for medical devices and imposing a maximum anti-dumping tax of 34.9% on European cognac [7] - These actions signify China's shift from its historical position, showcasing its status as the world's second-largest economy and a military power capable of responding to European challenges [7]