Macroeconomics

1. [Reverse Repo] The central bank announced that, to better align with the banking system's short-term liquidity needs, the People's Bank of China will conduct overnight reverse repo operations from September 14 to September 17. These operations will utilize fixed-rate, quantity-based tendering, with a daily volume not exceeding 600 billion RMB.

2. [US PPI] US Producer Price Index (PPI) rose 0.4% month-on-month and 5.4% year-on-year in August, marking the largest monthly increase in three months; markets are betting on a 70% probability of a Federal Reserve rate hike next week.

3. [US Treasuries] The US Treasury's long-term bond buyback operation, exceeding $5 billion, fell short of the maximum target; the sell-off in US Treasuries remains unstoppable, with the 10-year yield approaching 5%.

4. [ECB Rate Hike] The European Central Bank raised its three key interest rates by 25 basis points. Specifically, the deposit facility rate was raised from 2.25% to 2.5%, while the main refinancing rate and the marginal lending rate were also raised, reaching 2.65% and 2.9%, respectively.

5. [Shipping] According to Iranian sources, Iran has ordered a temporary suspension of the 10% freight surcharge on foreign vessels transporting energy products into or out of the country. This move is a tactical adjustment amidst ongoing maritime tensions in the Strait of Hormuz, a critical shipping channel vital to global energy supplies.

Plastics and Rubber

1. [EVA] On September 10, Yangzi-BASF Petrochemical raised its ex-factory price for EVA by 100 RMB/tonne for the week; the price for grade V5110J was quoted at 10,350 RMB/tonne.

2. [HDPE] On September 10, Shandong Wanhua Chemical quoted HDPE 7000F at 10,050 RMB/tonne in the East China region, an increase of 200 RMB/tonne.

3. [Natural Rubber] Market summary for natural rubber in Qingdao on September 10: Spot market quotes remained high but stable. Mainstream quotes for 2024-production Yunbao/Guangkeng/Haibao rubber were 18,700–18,900 RMB/tonne; 2025-production Yunbao/Guangkeng/Haibao rubber were 18,800–19,100 RMB/tonne; and Vietnamese 3L rubber was 19,400–19,600 RMB/tonne.

4. [Natural Rubber] On September 10, prices for natural rubber raw materials in Thai producing regions rose: Ribbed Smoked Sheets (RSS) were quoted at 86.00 THB/kg (up 0.25 THB/kg); field latex at 79.50 THB/kg (up 0.50 THB/kg); and cup lump at 74.10 THB/kg (up 0.50 THB/kg).

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