SunSirs: Plastics and Rubber Industries Bulk Commodity Intelligence (September 7, 2026)
Macroeconomics
1. [Reverse Repo] To maintain ample liquidity in the banking system, the People's Bank of China (PBOC) will conduct outright reverse repo operations totaling 500 billion RMB on September 7. The operation will utilize a fixed-quantity, interest-rate tender with multiple-price winning bids; the term is three months (89 days), with a maturity date of December 5 (postponed if falling on a holiday).
2. [US-Iran Conflict] On the 5th (local time), the US-Iran military conflict continued; the US military claimed to have struck three Iranian oil tankers that day. Subsequently, Iran stated that "out of desperation over the blockade of the Strait of Hormuz, the US military attacked three Iranian tankers, causing damage." In response, Iran attacked multiple oil tankers and US vessels while warning ships in the Persian Gulf to avoid traversing illegal shipping lanes.
On the 6th (local time), Rezaei, Secretary of Iran's Supreme National Security Council, announced that the Strait of Hormuz region would be declared a "no-go zone" in the coming days, extending from the US Navy blockade line to certain waters within the Persian Gulf. Vessels entering this zone would be placed on a sanctions list.
3. [US Non-farm Payrolls] Data released by the US Bureau of Labor Statistics showed that US non-farm payroll employment increased by 162,000 in August, far exceeding the market expectation of 56,000. The US unemployment rate for August stood at 4.1%, in line with market expectations.
Plastics and Rubber
1. [PE] Inner Mongolia Baofeng’s 500,000 mt/year No. 2 full-density polyethylene (PE) unit was temporarily shut down for maintenance on September 1, with production scheduled to resume on September 5.
Yannenghua’s 450,000 mt/year low-pressure polyethylene unit began a scheduled maintenance shutdown on August 3, 2026, and is expected to restart on September 16, 2026.
Dushanzi Petrochemical’s older 80,000 mt/year full-density Line 1 unit began a scheduled shutdown on August 18, 2026, and maintenance concluded on September 4, 2026; the new 300,000 mt/year full-density Line 2 unit entered scheduled maintenance on September 2, 2026, with a planned restart on September 7, 2026.
2. [PVC] As of September 3, factory inventories at Chinese PVC producers stood at a level equivalent to 4.2 days of production, a decrease of 8.70% month-on-month. This decline was driven by a surge in market trading volume at the end of the month and concentrated delivery of goods for both domestic and export markets; these factors, combined with production cuts due to maintenance at some facilities, resulted in the reduction of on-site inventories.