Macroeconomics

1. [China Manufacturing PMI] China's RatingDog Manufacturing PMI rose to a two-month high of 51.5 in August; the growth rate of new export orders hit a six-month high, while factory-gate prices declined for the first time this year.

2. [Federal Reserve] Federal Reserve Governor Michael Barr stated on September 1 that decisive action to raise interest rates is warranted if inflation does not sufficiently ease, noting that current US inflation levels remain too high. He indicated his readiness to support a rate hike if inflation fails to subside. The Fed is scheduled to hold its next policy meeting in mid-September.

3. [Eurozone Inflation] The Eurozone's latest inflation figures rose to their highest level in nearly three years, reinforcing the case for an interest rate hike by the European Central Bank next week. Preliminary data released by Eurostat on September 1 showed that, driven by persistently high energy prices, the Eurozone's Harmonised Index of Consumer Prices (HICP) rose 3.3% year-on-year in August (matching expectations). This was up from 2.9% in July and marked the highest level since September 2023.

4. [Bank of Japan] Bank of Japan Governor Kazuo Ueda stated that the market has already priced in a strong possibility of a rate hike in September, adding that he would not comment on daily market fluctuations.

Plastics and Rubber

1. [butadiene Rubber (BR)] Shandong Yihua Rubber & Plastic Technology Co., Ltd.'s 100,000-ton/year BR plant (nickel-based/neodymium-based) is currently operating normally, with plans to gradually reduce operating rates later this week.

2. [butadiene Rubber (BR)] On September 1, BR prices in the Jiangsu-Zhejiang region rose sharply, with spot traders raising offers by 200–300 RMB/ton. Currently, mainstream offers for BR from Daqing, Sichuan, and Dushanzi stand at 15,100–15,300 RMB/ton.

3. [Styrene-Butadiene Rubber (SBR)] On September 1, the SBR market in the Jiangsu-Zhejiang region saw a significant rise, with traders increasing offers by approximately 200–300 RMB/ton. Mainstream offers for Grade 1502 SBR from Fushun, Lanzhou Petrochemical, Yangzi Petrochemical, and Jilin Petrochemical are currently 15,250–15,400 RMB/ton.

4. [Natural Rubber] On September 1, the natural rubber market in Qingdao consolidated at high levels, with spot traders making minor adjustments to offers. Mainstream quotes for 2024-production Yunbao/Guangkeng/Haibao rubber are 18,000–18,200 RMB/ton; 2025-production Yunbao/Guangkeng/Haibao rubber is quoted at 18,100–18,300 RMB/ton; and Vietnamese 3L rubber is quoted at 18,800–18,950 RMB/ton.

5. [Polystyrene (PS)] Lianyungang Petrochemical operates four PS production lines with a total capacity of 400,000 tons/year. One GPPS (general-purpose PS) line was shut down in early August; current operations involve two GPPS lines and one HIPS (high-impact PS) line. On September 1, the ex-factory reference price for STL 525 was raised by 200 RMB/ton to 9,900 RMB/ton. Traders are adjusting prices in line with market trends, and sales performance is moderate.

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