Macroeconomics

1. [Foreign Exchange Reserves] According to statistics from the State Administration of Foreign Exchange, as of the end of January 2026, my country's foreign exchange reserves amounted to US$3,399.1 billion, an increase of US$41.2 billion compared to the end of December 2025, representing a growth of 1.23%.

2. [Excavators] According to statistics from the China Construction Machinery Association on major excavator manufacturers, 18,708 excavators of various types were sold in January 2026, a year-on-year increase of 49.5%. Of these, domestic sales totaled 8,723 units (including 24 electric excavators), a year-on-year increase of 61.4%; exports totaled 9,985 units (including 11 electric excavators), a year-on-year increase of 40.5%.

3. [University of Michigan Consumer Sentiment Index] The preliminary reading of the University of Michigan Consumer Sentiment Index for February in the United States was 57.3, the highest level in six months. At the same time, the 1-year inflation expectation fell to 3.5%, the lowest level in a year.

Plastics and Rubber

1. [PA66] Recently, the first phase of Tianjin Xinhecheng New Materials project received its construction permit, and above-ground construction is about to begin. The project has a total investment of approximately 10 billion RMB and utilizes proprietary butadiene-based adiponitrile technology to create a complete adiponitrile-hexamethylenediamine-nylon 66 industrial chain. The first phase is planned to produce 100,000 tons of adiponitrile, 100,000 tons of hexamethylenediamine, and 140,000 tons of nylon 66 annually, while the second phase is planned for 400,000 tons of nylon 66. The products will be used in automotive, electronics, new energy, and other fields.

2. [Rubber] Recently, the first phase (10,000 tons) of Jiangsu Hengnuo New Materials Technology Co., Ltd.'s 110,000-ton/year biodegradable polyester rubber project entered the production line linkage and trial production stage. This biodegradable polyester rubber material uses succinic acid, sebacic acid, and 1,4-butanediol as main raw materials, and is a globally and domestically innovative rubber variety.

3. [Polybutadiene Rubber] Yangzi Petrochemical's 100,000 ton/year high-cis polybutadiene rubber plant has been temporarily shut down since February 5, 2026, with the restart time yet to be determined.

4. [PE] During this period (January 30th - February 5th), the capacity utilization rate of Chinese polyethylene producers was 85.91%, an increase of 0.56 percentage points compared to the previous period. The production loss due to PE plant maintenance was approximately 66,200 tons, a decrease of 7,200 tons compared to the same period last week.

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