SunSirs: Building Materials 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.

Building Materials

1. [Wastepaper] On January 6th, Henan Xinxiang Hengli Paper increased its wastepaper purchase price by 40 RMB/ton, bringing the adjusted price (including VAT) to 1,640 RMB/ton.

Zhejiang Shaoxing Huayu Paper increased its waste paper purchase price by 20 RMB/ton, bringing the adjusted price (excluding VAT) to 1,620 RMB/ton.

Guangdong Dongguan Jiulong Paper decreased its waste paper purchase price by 30 RMB/ton, bringing the adjusted price to 1,710 RMB/ton.

Fujian Quanzhou Jiulong Paper decreased its waste paper purchase price by 30 RMB/ton, bringing the adjusted price to 1,660 RMB/ton.

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