SunSirs: Plastics and Rubber Industries Bulk Commodity Intelligence (December 29, 2025)

Macroeconomics

1. [Fiscal Policy] The National Fiscal Work Conference was held in Beijing. The meeting pointed out that in 2026, a more proactive fiscal policy will continue to be implemented; the scale of fiscal expenditure will be expanded to ensure necessary spending; and the combination of government bond instruments will be optimized to better leverage the effectiveness of bonds. The meeting required that in 2026, fiscal work should focus on six key tasks, including adhering to domestic demand as the main driver, vigorously boosting consumption, and increasing investment in key areas such as new productive forces and the comprehensive development of people; accelerating the cultivation and growth of new drivers of growth, and further increasing fiscal investment in science and technology; and further strengthening basic guarantees and safety nets to promote employment and income growth for residents.

2. [Industrial Value Added] Ministry of Industry and Information Technology: The value added of industrial enterprises above designated size is expected to increase by 5.9% year-on-year in 2025. Data shows that from January to November this year, the value added of high-tech manufacturing and equipment manufacturing above designated size increased by 9.2% and 9.3% year-on-year, respectively.

3. [Industrial Enterprise Profits] National Bureau of Statistics: From January to November, the total profits of industrial enterprises above designated size nationwide reached 6,626.86 billion RMB, a year-on-year increase of 0.1%. From January to November, the mining industry achieved total profits of 789.63 billion RMB, a year-on-year decrease of 27.2%; the manufacturing industry achieved total profits of 5,031.79 billion RMB, an increase of 5.0%; and the electricity, heat, gas and water production and supply industry achieved total profits of 805.44 billion RMB, an increase of 8.4%.

4. [Electricity] According to the National Energy Administration, as of the end of November, the cumulative installed power generation capacity nationwide reached 3.79 billion kilowatts, a year-on-year increase of 17.1%. Of this, solar power generation capacity was 1.16 billion kilowatts, a year-on-year increase of 41.9%; and wind power generation capacity was 600 million kilowatts, a year-on-year increase of 22.4%. From January to November, the cumulative average utilization of power generation equipment nationwide was 2,858 hours, a decrease of 289 hours compared with the same period of the previous year.

5. [Japan CPI] Japan's Tokyo core CPI rose by 2.3% year-on-year in December, a significant slowdown from the previous value of 2.8%, and also lower than market expectations of 2.5%, reaching a 14-month low.

Plastics and Rubber

1. [HDPE] During this period (December 19th-25th), the production loss due to PE plant maintenance was approximately 103,100 tons, an increase of 12,100 tons compared to the same period last week.

2. [NBR] Ningbo Shunze's 65,000 tons/year nitrile rubber plant is currently operating normally. The plant is scheduled for maintenance shutdown in February 2026.

3. [SBR] On December 26th, PetroChina Northeast Sales Company increased the price of emulsion styrene butadiene rubber by 100 RMB/ton: Jilin Petrochemical 1502 is currently priced at 11,400 RMB/ton (Northeast warehouse delivery price); Fushun 1502 is priced at 11,400 RMB/ton (Northeast warehouse delivery price).

4. [Polybutadiene Rubber] On December 26th, PetroChina Northeast Sales Company increased the price of polybutadiene rubber by 100 RMB/ton: Daqing and Jinzhou polybutadiene are currently priced at 11,200 RMB/ton (Northeast warehouse delivery price).

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