SunSirs: Plastics and Rubber Industries Bulk Commodity Intelligence (January 7, 2026)

Macroeconomics

1. [Monetary Policy] The central bank: In 2026, we will continue to implement a moderately loose monetary policy, leveraging the integrated effects of incremental and existing policies, strengthening counter-cyclical and cross-cyclical adjustments, and focusing on expanding domestic demand, optimizing supply, preventing and resolving risks, and stabilizing social expectations.

2. [Export Controls] Ministry of Commerce: In accordance with relevant provisions of the "Export Control Law of the People's Republic of China" and other laws and regulations, it has been decided to strengthen export controls on dual-use items to Japan. Exports of all dual-use items to Japanese military users, for military purposes, and to any other end-users that contribute to enhancing Japan's military capabilities are prohibited.

3. [Logistics Industry Prosperity Index] In December 2025, China's Logistics Industry Prosperity Index (LPI) was 52.4%, a month-on-month increase of 1.5 percentage points, reaching the highest level of the year. Among the main indicators, the business volume index, equipment utilization rate index, new orders index, capital turnover rate index, and employment index were all in the expansion range and continued to rise month-on-month.

4. [Federal Reserve] Federal Reserve Governor Milan stated that he expects subsequent economic data to continue to support the policy direction that "interest rate cuts are appropriate." The Federal Reserve should cut interest rates by more than 100 basis points this year. The Fed's policy is clearly restrictive and hindering economic development.

Plastics and Rubber

1. [EVA] On January 6th, the EVA market in Shanghai saw a slight decline. Currently, the mainstream price for Yangba V5110J is 9,400-9,600 RMB/ton, and the mainstream price for Lianhong UL00628 is 9,100-9,300 RMB/ton.

2. [PE] On January 6th, Maoming Petrochemical's #1 LDPE unit was shut down; the #2 LDPE unit produced 2426K; the full-density unit produced M2720A; the HDPE unit began major maintenance on November 24th, with a planned restart on January 31st, 2026. Maoming Petrochemical LDPE (South China Branch) 2426H was quoted at 8,500 RMB/ton, an increase of 100 RMB/ton.

3. [SBR] On January 6th, China National Petroleum Corporation South China Sales Company increased the price of emulsion styrene-butadiene rubber by 200 RMB/ton: Fushun 1502 is currently priced at 11,800 RMB/ton, and Lanzhou Petrochemical 1502E is priced at 11,800 RMB/ton.

4. [NBR] On January 6th, the nitrile rubber market in Shandong saw a slight increase. Nandi 1502 was quoted at 16,800-16,900 RMB/ton; Shunze 3355 was quoted at 15,800-15,900 RMB/ton; Russian 2665 was quoted at 14,700-14,800 RMB/ton.

5. [BR] On January 6th, China National Petroleum Corporation Northeast Sales Company increased the price of butadiene rubber by 200 RMB/ton: Currently, Daqing and Jinzhou butadiene rubber are priced at 11,700 RMB/ton ex-factory, Northeast warehouse delivery price.

6. [Natural Rubber] On January 6th, the natural rubber market in Qingdao saw an increase, with traders raising their quotes by 200-300 RMB/ton. 2024 Yunbao was quoted at 15,650-15,850 RMB/ton. Vietnamese 3L was quoted at 15,700-15,900 RMB/ton.

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