Satellite Chemical Braces for Tariff-Driven Cost Increase, China Works on Domestic Value Chains
Satellite Chemical, a leading chemical company, anticipates a 3-5% cost increase due to the 34% tariffs on ethylene imports to China. Despite this, the company expects benefits from domestic supply gaps and price increases. Meanwhile, China has been working on establishing domestic chemical value chains to mitigate tariff impacts.
US President Trump's tariff policy has imposed high tariffs, currently at 145%, on chemical imports from China. However, exports to the US only account for 10% of China's chemical exports and 1% of its total chemical sales. ChemChina, a major Chinese chemical company, reports that US tariff adjustments have had little impact on its overseas business, which spans over 80 countries and regions.
A financial analyst suggests that China's countermeasures to US tariffs may bring benefits to some chemical products. This could be achieved by increasing domestic price levels and encouraging alternative production methods like MTO (Methanol-to-Olefins). Chinese chemical companies and media claim that US tariffs will mainly hurt the US by increasing prices of scientific research equipment and supplies.
Satellite Chemical expects a cost increase due to Chinese tariffs but anticipates offsetting benefits. China is working on domestic value chains to mitigate tariff impacts. US tariffs on Chinese chemicals, while high, have a relatively small impact on China's total chemical sales. The impact on the distribution of specialty chemicals in Germany is unclear. Chinese companies suggest US tariffs will primarily hurt the US.
Read also:
- State Supreme Court Rules in Favor of Hogg Hummock Residents, Referendum on Zoning Change to Proceed
- Hundreds of Steelworkers and Metalworkers Protest in Duisburg for 4% Pay Hike
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Budget discrepancy jeopardizes highway projects' financial support
