Macroeconomics

1. [Electricity] Data released by the National Energy Administration shows that as of the end of 2025, the cumulative installed power generation capacity nationwide reached 3.89 billion kilowatts, a year-on-year increase of 16.1%. Of this, solar power generation capacity reached 1.2 billion kilowatts, a year-on-year increase of 35.4%; and wind power generation capacity reached 640 million kilowatts, a year-on-year increase of 22.9%.

2. [Federal Reserve Interest Rates] On January 28, local time, the latest minutes of the Federal Open Market Committee (FOMC) monetary policy meeting showed that the Federal Reserve decided to maintain the target range for the federal funds rate at 3.5% to 3.75%.

3. [Bank of Japan] The Bank of Japan's meeting minutes showed that if the outlook is in line with expectations, it would be appropriate to continue raising interest rates. Committee members unanimously agreed that even if the Bank of Japan raises interest rates at this meeting, the monetary policy environment will remain accommodative.

Plastics and Rubber

1. [PP] On January 28th, Shanghai Petrochemical's three PP production lines with a capacity of 400,000 tons/year were operating at normal capacity. The ex-factory reference price for T300 filament grade was increased by 100 RMB to 6,850 RMB/ton.

2. [BR] On January 28th, the butadiene rubber market in East China saw an upward trend, with suppliers raising their offers by 100-200 RMB/ton. Currently, the mainstream price for Daqing, Yangzi, and Qilu butadiene rubber is 13,050-13,200 RMB/ton; some private brands are quoted at around 12,900-13,050 RMB/ton.

3. [Natural Rubber] On January 28th, the natural rubber market in Qingdao saw an upward trend in the morning. Spot suppliers raised their offers by 100-200 RMB/ton. The mainstream price for 2024 Yunbao is 16,050-16,300 RMB/ton. The mainstream price for Vietnamese 3L is 16,300-16,500 RMB/ton.

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