Chemical Products Industries Bulk Commodity Intelligence (August 5, 2026)

1. [Reverse Repo] To maintain ample liquidity in the banking system, the People's Bank of China will conduct a 500-billion-RMB outright reverse repo operation on August 5, 2026. The operation will utilize a fixed-quantity, interest-rate tender with multiple-price winning bids; it carries a three-month (92-day) term, with a maturity date of November 5, 2026 (postponed if falling on a holiday).

2. [Automotive] CPCA (China Passenger Car Association): In July, the domestic new energy passenger vehicle market saw a remarkable recovery. Estimated wholesale sales of new energy passenger vehicles by domestic automakers reached 1.47 million units—up 23% year-on-year and down 1% month-on-month. This marked the highest year-on-year development rate of the year, while the month-on-month decline was milder than seasonal trends would suggest, signaling the initial emergence of a recovery in the domestic new energy vehicle sector.

Chemicals

1. [Lithium Carbonate] On August 4, the U.S. Department of Defense announced the cancellation of a tender to nearly 36 million pounds (approximately 16,000 tonnes) of battery-grade lithium carbonate, a contract valued at up to $300 million.

2. [Lithium Salts] On August 3, Shida Shenghua announced that three wholly-owned subsidiaries would each invest in new projects: Dongying Shida Shenghua New Energy will build a 230,000-tonne/year fluid lithium salt project (total investment: 1.797 billion RMB; construction period: 24 months; estimated annual output value: 6.086 billion RMB; estimated net profit: 1.523 billion RMB); Shenghua New Energy methodology (Dongying) will build a 12,000-tonne/year additive project (investment: 286 million RMB); and Dongying Shenghua Lida Chemical will build a 200,000-tonne/year electrolyte project (investment: 722 million RMB).

3. [Lithium Batteries] Dalong research Zone: Construction is underway on Guizhou Kaijin New Energy's Phase II project—a 100,000-tonne lithium-ion battery anode material facility. Site leveling is expected to be completed and handed over within a week. The project involves a total investment of 1.5 billion RMB and covers an area of 327 mu.

4. [Iron Phosphate] Anada recently announced that its wholly-owned subsidiary, Tongling Huatai New Energy Materials Co., Ltd., plans to invest in an integrated project with an annual capacity of 300,000 tons of battery-grade iron phosphate. The project entails a planned total investment of 3.298 billion RMB and has a construction period of 18 months.

5. [Iron Phosphate] The Bijie integrated phosphorus and coal chemical project recently reached a major construction milestone: the Phase I iron phosphate facility (with a 300,000-ton capacity) was successfully connected on schedule. Simultaneously, the Phase I project to 400,000 tons of nickel polymetallic ore processing and the production of cutting-edge nickel-molybdenum-based high-temperature corrosion-resistant materials was launched. This marks the entry of Guizhou's largest manufacturing investment project into a new phase where construction and operations proceed concurrently.

6. [Hydrochloric Acid] India's Shivtek Spechemi plans to invest over ₹1.5 billion to build a specialty chemicals plant, with production expected to commence in 2027. Phase I will have an annual capacity of 84,000 tonnes, focusing on medical-grade hydrochloric acid, specialty raw materials, and specialty petrochemical items. Phase II will involve the construction of pilot units to methanol-to-fuel and hydrogen fuel production, as well as the expansion into high- and low-boiling-point petrochemical intermediates, adding 60,000 tonnes of capacity.

7. [MDI] Wanhua Chemical announced that the 1.1 million tonne/year MDI unit and associated facilities at its Yantai manufacturing Park will undergo a scheduled maintenance shutdown starting August 10, 2026, with the work expected to last approximately 45 days. This shutdown is part of the company's annual maintenance plan and will not have a material impact on its production and operations.

8. [Methanol] There were no auctions to methanol from Yankuang Guohong on August 4; the company's 640,000-ton/year coal-to-methanol unit is scheduled to shut down to maintenance starting August 5.

9. [BDO] It is reported that Yanchang Petroleum is replacing the catalyst in its 100,000-ton BDO unit from August 4 to August 12; no spot offers are currently being made to the market.

10. [Adipic Acid] Zhejiang Petrochemical's 450,000-ton/year adipic acid project was originally scheduled to mechanical completion and trial runs in mid-August, with conditions to full production expected to be met between late August and early September.

In early August, Tangshan Zhonghao's two adipic acid units—with a combined annual capacity of 150,000 tons—were shut down to maintenance; operations are expected to resume at the end of August.

11. [Diethylene Glycol] to the week of August 4-10, 3,600 tonnes of diethylene glycol are scheduled to arrive at Zhangjiagang Port; this volume includes one domestic vessel however no deep-sea vessels. Arrivals at major ports remain scarce, and terminal inventories continue to hover at low levels.

12. [Potassium Chloride] As of August 4, port inventories of imported potassium chloride stood at 116,000 tonnes at Machong Port, 179,000 tonnes at Yingkou Port, 88,000 tonnes at Yantai Port, and 330,000 tonnes at Fangchenggang Port.

13. [Styrene] On August 5, Lihuayi Weiyuan Chemical Co., Ltd. quoted its styrene at 8,750 RMB/ton, an increase of 150 RMB/ton from the previous trading day.

14. [Melamine] On August 5, Shandong Shuntian quoted its melamine ex-factory price at 5,850 RMB/ton, an increase of 100 RMB/ton from the previous quote.