SunSirs: Rubber and Plastics Industries Bulk Commodity Intelligence (October 22, 2025)

Macroeconomics

1. [Fed Rate Cut] On October 29th local time, the Federal Reserve announced a 25 basis point cut to the target range for the federal funds rate, bringing it to between 3.75% and 4.00%. This is the Fed's second rate cut since September 17th, following a 25 basis point cut, and the fifth rate cut since September 2024.

2. [Federal Reserve] Fed Chairman Powell stated that the government shutdown could affect the December meeting, and that greater caution may be necessary in the absence of data. The lack of economic data could provide a reason to pause rate adjustments. A December rate cut is "far from" a certainty.

3. [Canadian Rate Cut] The Bank of Canada cut its benchmark interest rate by 25 basis points to 2.25%, in line with market expectations, marking its second consecutive rate cut.

4. [South Korea-US Trade Talks] South Korea and the US reached a concrete agreement in their trade talks. Of the $350 billion South Korean investment in the US, South Korea will invest $200 billion in cash, and the remaining $150 billion will be used for shipbuilding cooperation. The US will reduce tariffs on South Korean automobiles from 25% to 15%. In the semiconductor sector, South Korea stated that the agreed-upon tariff levels will not disadvantage it. Furthermore, South Korea has obtained most-favored-nation (MFN) status regarding pharmaceutical tariffs.

Rubber and Plastics

1. [EPS (Expanded Polystyrene) ] On October 29th, Anhui Jiaxi's EPS (Expanded Polystyrene) ordinary material price was 8,300 RMB/ton, and flame-retardant material price was 8,500 RMB/ton, a decrease of 50 RMB/ton. Actual prices are negotiable.

2. [Styrene-Butadiene Rubber (SBR) ] On October 29th, PetroChina Southwest Sales Company lowered its SBR price by 200 RMB/ton: Lanzhou Petrochemical's 1500E and 1502E warehouse-delivered price is currently 11,300 RMB/ton.

3. [Natural Rubber] On October 29th, the Thai natural rubber raw material market saw a slight increase: Smoked sheet was quoted at 60.00 baht/kg, stable; latex was quoted at 55.50 baht/kg, up 0.50 baht/kg; cup lump was quoted at 54.85 baht/kg, up 0.15 baht/kg.

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