Macro

1. MLF operation: On August 25, 2025, the People's Bank of China will carry out MLF operation of 600 billion RMB in the form of fixed quantity, interest rate bidding and multi price winning, with a period of one year.

2. Electricity: According to data from the National Energy Administration, as of the end of July, the cumulative installed power generation capacity in China was 3.67 billion kilowatts, a year-on-year increase of 18.2%. Among them, the installed capacity of solar power generation was 1.11 billion kilowatts, a year-on-year increase of 50.8%; The installed capacity of wind power was 570 million kilowatts, a year-on-year increase of 22.1%.

3. US tariffs: Starting from August 29th, the United States will temporarily suspend duty-free treatment for imported packages worth $800 or less, and all applicable taxes and fees will be required for small packages. Affected by this, postal operators in multiple European countries have recently announced the suspension of parcel services to the United States.

4. Canada's tariffs on the United States: Canadian Prime Minister Carney announced on the 22nd that the country will begin to lift some retaliatory tariffs on the United States from September 1st, but will still retain retaliatory tariffs on US steel, aluminum, and automobiles.

5. Federal Reserve: Federal Reserve Chairman Powell stated at the Jackson Hole Global Central Bank Annual Meeting that the current situation suggests downward risks to employment growth, and changes in the risk balance point may require policy adjustments. Powell stated that the Federal Reserve is open to interest rate cuts.

6. Japan CPI: Japan's core CPI in July increased by 3.1% year-on-year, higher than the expected value of 3%, and the growth rate has remained above 3% for 8 consecutive months. Energy prices have turned downward for the first time since March 2024, with an overall decrease of 0.3%.

Energy Industry

1. Crude oil: On August 22nd, international crude oil futures continued to rise. The settlement price of the October WTI crude oil futures contract in the United States was $63.66 per barrel, an increase of $0.14 or 0.2%. The settlement price of Brent crude oil futures for October was $67.73 per barrel, an increase of $0.06 or 0.1%.

UBS Group expects Brent crude oil to remain at a high level in the range of $60 to $70 per barrel in the short term, and then fall back to a lower level in that range later this year.

2. Diesel: Indonesia's Ministry of Trade urged the European Union on Monday to immediately lift the countervailing duty imposed on biodiesel imports, as the World Trade Organization has ruled in favor of Indonesia on several key demands in the country's appeal.

3. Coke: On August 22, Hebei market steel mills raised the purchase price of coke by 50/55 RMB/ton. After the adjustment, the first level wet quenched coke (A≤12.5, S≤0.7, CSR≥65, MT≤7) was reported at 1,640 RMB/ton; First level dry quenching (A≤12.5, S≤0.7, CSR≥65, MT≤0), reported at 2,010 RMB/ton (top loading coke); The above are all factory acceptance prices including tax, which will be implemented from 0:00 on the 22nd.

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