Macroeconomics

1. [PMI] According to the National Bureau of Statistics, in December, the Manufacturing Purchasing Managers' Index (PMI) was 50.1%, an increase of 0.9 percentage points from the previous month, rising into the expansion range; the Non-manufacturing Business Activity Index was 50.2%, an increase of 0.7 percentage points from the previous month, returning to the expansion range. The composite PMI output index was 50.7%, an increase of 1.0 percentage points from the previous month, indicating that my country's enterprise production and operation activities generally expanded compared to the previous month.

2. [Total Social Logistics] According to the China Federation of Logistics & Purchasing, from January to November, the total social logistics volume nationwide was 331.2 trillion RMB, a year-on-year increase of 5.0% at comparable prices, with a 4.5% increase in November.

3. [Federal Reserve] The minutes of the Federal Reserve's December meeting showed that the FOMC agreed to cut interest rates at the December meeting, but officials were sharply divided. Some participants indicated that, based on their economic outlook, it might be necessary to keep the target interest rate range unchanged for some time after lowering the interest rate range at this meeting. The minutes also showed that if inflation gradually declines as expected, most officials believe that further interest rate cuts would be appropriate. The committee members unanimously agreed that reserve balances have fallen to a sufficient level, and the committee will begin purchasing short-term Treasury bonds as needed to continuously maintain sufficient reserve supply. They also agreed to remove the overall limit on standing repurchase operations.

Rubber and Plastics

1. [SBR] On December 30th, Sinopec's SBR ex-factory price increased by approximately 100 RMB/ton. Qilu 1502/1502E was quoted at 11,500 RMB/ton (ex-factory, including tax). Yangzi SBR 1502 was quoted at 11,500 RMB/ton in East China.

2. [Natural Rubber] On December 30th, the natural rubber market in Qingdao remained relatively stable. Yunbao 24 was mainly quoted at 15,350-15,500 RMB/ton. Vietnamese 3L was mainly quoted at 15,450-15,600 RMB/ton.

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