Lotte Chemical Titan Holding Bhd shares fell to their lowest level since April 2020 on Thursday, with investors reacting to widening quarterly losses and an uncertain future. The company’s stock dropped by as much as 4.5 sen, or nearly 5%, to 91.5 sen , giving it a market capitalisation of RM2.13 billion . The petrochemical company faces challenges as product spreads remain under pressure due to a global supply glut , primarily from new capacity expansions in China . Analysts at TA Securities noted that Lotte Chemical is likely to stay in the red “over the next few quarters” and maintained a 'sell' rating on the stock. The company has reported quarterly losses since 2QFY2022 and is expected to continue to report losses through this year. Analysts estimate that Lotte Chemical may not return to profitability for another two years , according to Bloomberg consensus data. A significant challenge for Lotte Chemical is the squeeze in spreads between naphtha costs and polymer sel
The European Union (EU) has decided to move forward with higher tariffs on electric vehicles (EVs) from China, intensifying trade tensions between the two economic powers. The new tariffs will peak at 45%, with the levies depending on the manufacturer and ranging from 8% to 35% on top of the existing 10% rate. The tariffs will come into effect later this week.
This decision follows months of negotiations and threats of Chinese retaliation, with Beijing warning of potential consequences, including tariffs on European goods. China has already hinted at retaliatory measures, including possible actions against dairy, pork, and large-engine cars from Europe.
Chinese automakers, especially BYD Co., have rapidly grown in the global EV market, raising concerns among European carmakers such as Mercedes-Benz and BMW about potential damage to their sales in China. Volkswagen is already considering closing several factories in Germany due to the pressures in the market.
The EU's tariffs come amid a broader effort to counter Chinese industrial subsidies and maintain European competitiveness, but this has raised the risk of an escalating trade confrontation. While discussions between Beijing and Brussels continue, no breakthrough has been reached so far, and China has urged for a collective agreement for all automakers rather than individual deals.
China has also threatened to freeze investments in countries backing the tariffs and could raise its vehicle tariffs, which were reduced to 15% in 2018, to as high as 25%. Both sides are expected to face further challenges in negotiations, and China's retaliatory measures could begin to materialize next month.
Amid these tensions, both the EU and China are also keeping an eye on the upcoming US election, as a possible return of Donald Trump could bring further tariffs that would impact both economies.
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