Asian Markets
March 22, 2026
China Responds to Record Trade Surplus
China vows more open economy in bid to boost confidence
ByLiam Mo and Ryan Woo
March 22 2026 – 8:00am
China has faced tensions with major trading partners over its record $A1.7 trillion trade surplus. Photo: EPA PHOTO
Chinese Premier Li Qiang has pledged to further open up the economy and fully implement national treatment for foreign enterprises as the country seeks to reassure the outside world amid rising global trade tensions.
China will import more high-quality foreign goods and work with all parties to promote optimised and balanced trade development and expand the global trade pie, Li told the China Development Forum in Beijing, state media reported on Sunday.
The annual two-day forum, which concludes on Monday, allows Beijing to lay out its economic vision and investment opportunities to foreign business leaders, Chinese officials, economists and academics.
This year’s gathering comes as the world’s second-largest economy faces rising tensions with major trading partners over 2025’s record $US1.2 ($A1.7) trillion trade surplus.
Premier Li Qiang says China is committed to being a “harbour of stability” for the world economy. (EPA PHOTO)
Challenges for Beijing are aplenty, including deflecting concerns from an increasing number of global capitals about China’s trade practices and overcapacity, as well as their overreliance on key Chinese products.
While Li’s speech did not appear to directly mention the surplus, his pledges indicate an awareness that the issue could disrupt international relations at a time when China has reached a temporary truce with the US on trade.
US President Donald Trump last week postponed a trip to Beijing to meet with Chinese President Xi Jinping due to the Iran war, delaying an effort to ease tensions between the world’s two biggest economies.
In a separate speech at the forum, China’s central bank governor Pan Gongsheng also sought to alleviate concerns surrounding the trade surplus.
“Analysing global economic imbalances requires looking not only at trade in goods but also services, and not only at the current account but also the financial account,” Pan said, according to a transcript of his speech published by the People’s Bank of China, adding that China is the country with the largest goods surplus but also the largest services deficit.
China has no need and no intention to gain trade competitive advantage through currency depreciation, Pan said.
Senior executives attending include those from Apple, Samsung Electronics, Volkswagen, chipmaker Broadcom Inc, industrial conglomerate Siemens, chemical producer BASF and pharmaceutical firm Novartis.
There were no Japanese company executives on the guest list on the forum’s website.
said foreign firms would be treated in the same way as domestic ones, allowing enterprises from all countries to develop with confidence and realise their ambitions in China.
In a separate meeting, Commerce Minister Wang Wentao told business leaders from a US pharmaceutical trade group and executives from five major multinational drug companies that China would strengthen intellectual property protection and improve policy transparency.
Australian Associated Press
March 10, 2026
Chinese Mattress Update
China’s Foam Mattress Exports Hit Record High in 2025
PUdaily | Updated: March 10, 2026
China’s Foam Mattress Exports Reach Record High in 2025 amid Global Demand Recovery
In 2025, China exported 158,696 tons of foam mattresses, a 3% increase from 154,040 tons in 2024, extending the recovery trajectory observed over the past three years. Exports rose from roughly 132,000 tons in 2023 to above 150,000 tons in 2024 as global demand recovered, and continued to grow steadily in 2025 on that elevated base. This marks a structural shift in China’s foam mattress export sector from post-pandemic recovery toward a more stable, higher plateau .
Source: GACC – China Sponge Mattress Export Volume (Tons), 2023–2025
China’s foam mattress exports exhibited a pronounced V-shaped seasonal pattern on a monthly basis in 2025. Exports reached an annual low of 7,604 tonnes in February, followed by a swift rebound in March. Momentum strengthened significantly from Q3 onward: volumes remained consistently within the 14,800-15,200-tonne range during August-October, peaking at 15,231 tons in October—the highest monthly figure recorded in the past three years. Year-on-year comparisons reveal that nearly all months in 2025 registered substantial growth relative to 2023; however, growth versus 2024 was comparatively muted, indicating normalization of overseas inventory levels and diminishing restocking impulses.
Source: GACC – China Sponge Mattress Export Volume (Tons), 2025
By destination, China’s foam mattress exports follow a “dual-core, multi-regional support” structure. The United States (23,698 tons) and Japan (22,759 tons) remained the two largest markets. US demand expanded notably from Q3 onward—consistent with concentrated retail restocking activity in the latter half of the year—while Japanese demand remained relatively stable. Within Europe, Germany (13,597 tons), France (8,634 tons), and the United Kingdom (7,585 tons) constituted the core consumption cluster, though growth momentum remained subdued.
Asia-Pacific and emerging markets have evolved into critical supplementary channels. Australia (11,316 tonnes) demonstrated notable resilience; South Korea (7,195 tonnes) maintained moderate growth; and Mexico (8,277 tonnes) posted robust performance, reflecting enhanced regional absorption capacity in Latin America, partly driven by North American supply-chain diversification initiatives. Smaller markets such as Poland and Thailand sustained steady import volumes. “Others” collectively accounted for 47,631 tonnes (about 30% of total exports), underscoring an ongoing structural shift away from overreliance on traditional Western markets toward a more geographically diversified export portfolio.
From a value-chain perspective, flexible polyurethane (PU) foam serves as the principal raw material for foam mattresses. It is typically produced by reacting polyether polyols with toluene diisocyanate (TDI), yielding a lightweight, resilient, breathable, and durable material widely employed in mattresses, upholstered furniture, and automotive seating. Owing to these functional attributes, polyurethane-based materials are incorporated in over 70% of globally produced mattresses. The rapid adoption of vacuum-compressed (rolled) mattresses via e-commerce platforms in Europe and North America has further elevated the strategic importance of PU foam products in China’s export mix, given advantages in compressibility and logistics costs. Concurrently, TDI price volatility continues to exert measurable influence on manufacturers’ input costs and their export competitiveness.
At the end-consumer level, mattress demand reflects long-term macroeconomic and demographic drivers—including housing market activity, household formation trends, and upgrading of home consumption standards. In mature markets such as the US and Europe, average mattress replacement cycles span 8-10 years, resulting in broadly stable underlying demand—though cyclical upticks often coincide with improvements in housing sales or consumer sentiment. Meanwhile, the rapid expansion of online mattress sales has benefited Chinese exporters, whose vertically integrated manufacturing capabilities and responsive supply chains position them advantageously to capture e-commerce opportunities.
China’s foam mattress exports are projected to remain stable in the near to medium term, but the underlying growth drivers are undergoing structural change. First, demand in mature Western markets is expected to grow moderately, increasingly propelled by product innovation and brand differentiation rather than volume expansion. Second, the main incremental demand is expected to come from emerging regions—Southeast Asia, the Middle East and parts of Latin America—where rising incomes and accelerated urbanization are expanding home-furnishing consumption.
Furthermore, product upgrading will be a central strategic priority for the industry. In recent years, memory-foam mattresses, low-VOC polyurethane materials, and recyclable foam manufacturing technologies have garnered increasing attention. As international environmental regulations tighten and consumers place heightened emphasis on healthy indoor environments, future flexible PU products will be evaluated increasingly on environmental performance, ergonomic comfort, and durability. Chinese manufacturers must therefore complement cost competitiveness with sustained investment in technology and product innovation.
In summary, China’s foam mattress export sector progressed through three distinct phases between 2023 and 2025: post-pandemic recovery (2023), rapid expansion (2024), and consolidation (2025). Surpassing the 150,000-tonne threshold in 2025 signifies that the industry has established a structurally resilient export platform. While Chinese firms are expected to retain strong global market presence, competitive intensity is set to increase. Firms that proactively expand into high-potential emerging markets, accelerate product upgrades and build internationally recognized brands will be best positioned to secure leadership in the next phase of industry evolution.
March 9, 2026
Wanhua Declares Force Majuere on Middle East Shipments
China’s Wanhua halts Middle East deliveries over shipping risks
Wanhua Chemical facility in China
Published on:
09 Mar 2026, 6:09 am
China’s Wanhua Chemical has declared force majeure on supplies to its Middle East customers, a company representative said on Monday.
The force majeure – a provision in a contract that relieves parties from their obligations because of an extraordinary event – came into effect on March 7, according to a letter Wanhua sent to customers and seen by Reuters.
“We are facing the severe disruption of shipping routes in the Strait of Hormuz, making delivery impossible or unreasonably dangerous,” the letter said.
The petrochemical major typically sells some of its derivatives such as isocyanates, a building block for polyurethane products used for bedding, furniture and automotive interiors, to the Middle East, traders said.
It operates two crackers, with a total ethylene production capacity of 2.2 million tonnes per year, at its site in Yantai in Shandong province.
Both crackers are still running at high rates for now, two sources familiar with the matter said.
Wanhua declined to comment when asked about any production cuts at the two crackers.
March 4, 2026
Chinese Cost Updates
Shipping Crisis Escalates: Domestic Chemical Industry Chain Faces Comprehensive Price Hikes
2026-03-04 15:57:03Source: ChemNet中文
Recently, due to the rapid escalation of the Middle East situation and the closure of the Strait of Hormuz shipping lanes, global energy and chemical supply expectations have tightened sharply. The domestic chemical futures market has experienced widespread consecutive limit-up gains, with core varieties such as crude oil, fuel oil, and methanol recording cumulative increases of over 10% in two days. The rapid rise in costs has formed a complete price transmission chain. Leading companies such as Wanhua Chemical, Luxi Chemical, and Sinopec have intensively raised product prices, pushing the entire chemical industry into a phase of cost pressure and widespread price increases.
I. Futures Market Surges Across the Board, Multiple Varieties Rise Over 10% in Two Days
As a crucial passage for approximately 30% of global seaborne crude oil and over one-third of methanol trade, the obstruction of navigation through the Strait of Hormuz has directly impacted China’s highly import-dependent energy and chemical system. The domestic futures market reacted sharply, with varieties such as crude oil, fuel oil, methanol, LPG, plastics, polypropylene, ethylene glycol, propylene, and pure benzene collectively surging. Among them:
Crude oil and fuel oil main contracts hit limit-up for two consecutive days, with cumulative increases exceeding 10%;
Methanol main contracts rose continuously for two days, with cumulative gains breaking 10%, making it one of the core leading varieties in this round of market trends;
Downstream chemical products such as polypropylene, polyethylene, ethylene glycol, and propylene followed suit, showing a strong pattern across the entire sector.
Market participants indicated that this rally was driven by three factors: supply disruption expectations, soaring logistics costs, and cost-side resonance, with varieties highly dependent on Middle Eastern supplies showing particularly pronounced elasticity.
II. Full Industry Chain Price Transmission Forms Five Major Lines Under Comprehensive Pressure
As the “mother of chemicals,” the price increase effect of crude oil quickly transmitted downstream, forming a clear industrial chain price transmission chain covering five core lines: methanol, polyester, pure benzene-propylene, plastics, and MDI-phosphorus chemicals. Costs have risen across the entire industry:
Methanol Industry Chain: Methanol → Formaldehyde → Acetic Acid, soaring raw material costs directly push up downstream processing costs;
Polyester Industry Chain: PTA → Ethylene Glycol → Polyester Filament → Short Fiber, textile and chemical fiber raw materials face comprehensive pressure;
Pure Benzene-Propylene Chain: Pure Benzene → Propylene → High Styrene → Phenol Ketone → Propylene Oxide, both aromatic and olefin lines experience price increases;
Plastics Sector: Polyethylene (PE) → Polypropylene (PP) → ABS, raw material costs for packaging and injection molding industries climb;
MDI-Phosphorus Chemicals: Polymeric MDI → TDI → Phosphate Rock and Phosphates, polyurethane and phosphate fertilizer sectors follow suit with price increases.
III. Enterprises Intensively Adjust Prices, Leading Companies Take the Lead in Raising Prices to Counter Cost Pressure
Facing soaring raw material costs, domestic chemical industry leaders intensively issued price adjustment notices in early March, covering varieties such as styrene, trichloromethane, phenol, urea, propylene oxide, and pure benzene, with adjustments ranging from 30 yuan/ton to 500 yuan/ton:
Wanhua Chemical: Styrene raised by 250 yuan/ton (early March);
Luxi Chemical: Trichloromethane raised by 250 yuan/ton (March 4);
Sinopec North China: Phenol raised by 500 yuan/ton (March 3);
Lihuayi Weiyuan: Phenol and styrene raised by 270-300 yuan/ton (March 2);
Hualu Hengsheng: Urea raised by 30 yuan/ton (March 2);
Binzhou Chemical / Xinyue: Propylene oxide raised by 150-200 yuan/ton (March 2);
Dongming Petrochemical: Pure benzene and sulfur raised by 100-160 yuan/ton (March 2).
The industry pointed out that this round of price adjustments is primarily cost-driven. To alleviate the pressure of rising raw material costs and ensure stable production, companies were forced to raise ex-factory prices. Downstream processing, manufacturing, textile, and packaging industries will gradually bear the cost pressure.
IV. Market Outlook: Geopolitical Risks Persist, Chemical Prices Remain Strong
Currently, there are no signs of easing in the Middle East situation, and navigation through the Strait of Hormuz remains highly uncertain. Coupled with the recovery in demand for resumption of work and production in China in March, the supply and demand dynamics for chemicals remain tight.
In the short term, core varieties such as crude oil and methanol will continue to be dominated by geopolitical events, with prices prone to rise rather than fall. If the shipping lanes remain closed in the medium term, the gap in imported supplies will further widen, potentially prolonging the period of high domestic chemical prices. Profit distribution along the industrial chain will tilt toward the raw material end, and cost pressures on downstream enterprises will continue to intensify.
February 11, 2026
Indian ADD for TDI 80
Government Extends Anti-Dumping Duty on TDI Imports from EU, Saudi Arabia
Custom Duty | Notifications ADD, Notifications/Circulars The Ministry of Finance has issued Notification No. 03/2026-Customs (ADD) dated 10 February 2026, imposing anti-dumping duty on imports of Toluene Di-Isocyanate (TDI) having isomer content in the ratio of 80:20, classified under tariff item 2929 10 20, originating in or exported from the European Union and Saudi Arabia. The decision follows final findings of the designated authority dated 12 November 2025, which concluded that cessation of existing anti-dumping duty would likely lead to continuation of dumping and injury to the domestic industry.
Exercising powers under Section 9A of the Customs Tariff Act, 1975 and relevant rules, the Government has specified producer-wise duty rates ranging from US$ 102.05 to US$ 344.33 per metric tonne. The duty will remain effective for five years unless earlier revoked or amended and shall be payable in Indian currency based on the exchange rate notified under the Customs Act.
MINISTRY OF FINANCE (Department of Revenue) Notification No. 03/2026-Customs (ADD) | Dated: 10th February, 2026 G.S.R. 121(E).— Whereas, in the matter of “Toluene Di-Isocyanate (TDI) having isomer content in the ratio of 80:20” (hereinafter referred to as the subject goods) falling under tariff item 2929 10 20 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in or exported from European Union and Saudi Arabia (hereinafter referred to as the subject countries), and imported into India, the designated authority in its final findings, published in the Gazette of India, Extraordinary, Part I, section 1 vide notification No. 7/14/2024-DGTR, dated the 12th November, 2025 has inter alia come to the conclusion that there is a likelihood of continuation of dumping and consequent injury to the domestic industry in case of cessation of anti-dumping duty in force, and has recommended continued imposition of anti-dumping duty on imports of the subject goods originating in or exported from the subject countries.
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 and in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 28/2021-Customs (ADD), dated the 27th April, 2021, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 297(E), dated the 27th April, 2021, except as respects things done or omitted to be done before such supersession, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under tariff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the countries as specified in the corresponding entry in column (4), exported from the countries as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6), and imported into India, an anti-dumping duty at the rate equal to the amount specified in corresponding entry in column (7), in the currency as specified in the corresponding entry in column (9) and as per the unit of measurement as specified in the corresponding entry in column (8) of the said Table, namely:−
Customs classification is only indicative and not binding on the scope of the subject goods. ** The subject goods in the present investigation concerns TDI having isomer content in the ratio of (80:20). All other grades are beyond the scope of subject goods. 2.
The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded, or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.
Explanation. – For the purposes of this notification, the rate of exchange applicable for the purposes of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Act. [F. No. 190349/6/2026-TRU] DHEERAJ SHARMA, Under Secy.
Read more at: https://taxguru.in/custom-duty/government-extends-anti-dumping-duty-tdi-imports-eu-saudi-arabia.html
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