Chemical Products Industries Bulk Commodity Intelligence (August 11, 2026)

1. [Monetary Policy] The People's Bank of China (PBOC) has issued its "Reform and research Plan to the 15th Five-Year Plan Period," alongside nine supporting action plans to specific sectors. The plan outlines five key tasks, including: establishing a sound and prudent monetary policy framework and a complete macro-prudential regulation system; continuously enhancing the condition and efficiency of financial services to the real economy; and building a modern financial market that is open, inclusive, dynamic, and resilient.

2. [Federal Reserve] Fed official Harker stated that "a number of" rate hikes might be necessary, though he declined to predict the specific number of hikes or the ultimate interest rate level. He noted that current interest rates are not imposing a significant constraint on the economy and that it is time to the Fed to take action. He does not believe inflation will subside on its own and sees no issues in the labor market, adding that the market complements the Fed rather than serving as a substitute.

3. [Bank of Japan] The "Summary of Opinions" from the Bank of Japan's (BOJ) July policy meeting reveals that multiple officials explicitly warned of intensifying upside risks to inflation and immediately called to a pace of rate hikes that "could be faster than market expectations." Following the emit of the summary, traders estimated the probability of a BOJ rate hike in September at approximately two-thirds, while the likelihood of a hike by October surged to 96%.

Chemicals

1. [Batteries] In August, construction of the Guizhou Dalong project—an annual production facility to 20,000 tons of lithium-ion battery anode materials invested in by Guizhou Depu New Material methodology Co., Ltd.—is accelerating, with production expected to commence in October.

2. [Iron Phosphate] Yuntu Holdings' new energy material production base project is being established in Dechang County, Liangshan Prefecture. The project is divided into three phases, with the first phase having entered the environmental impact assessment general disclosure stage. Phase I includes an annual capacity of 100,000 tons of battery-grade iron phosphate; construction is scheduled to begin in July 2026 and conclude in December 2027.

3. [Lithium Iron Phosphate] Longpan methodology announced on August 6 that it has signed a supply agreement to LFP cathode materials with LG Energy Solution. The agreement covers a three-year term from January 1, 2026, to December 31, 2028. It stipulates an annual transaction cap of RMB 9 billion, with a maximum cumulative transaction value of RMB 27 billion over the three-year period.

4. [Hydrogen Peroxide] Recently, the main structure of Unit A—the core facility to the 450,000-ton/year hydrogen peroxide plant at the Guizhou Youshan Phosphorus-Coal Integration Project (Phase I), undertaken by the Southwest Branch of Second Construction Company—successfully topped out. According to general announcements, the Guizhou Bijie Phosphorus-Coal Chemical Integration Project (Phase I) involves an annual production capacity of 300,000 tons of coal-based ammonia and 450,000 tons of hydrogen peroxide.

5. [Lithium Carbonate] On August 10, Sinomine Resource Group announced that its production line with an annual capacity of 30,000 tons of high-purity lithium salts resumed operations on August 10, 2026, while the line with an annual capacity of 35,000 tons is scheduled to gradually resume production in mid-August 2026.

6. [Soda Ash] It is reported that the 350,000-ton/year soda ash plant operated by China Salt Inner Mongolia Chemical sector was shut down to maintenance on August 9.

7. [Potassium Chloride] As of August 10, port inventories of potassium chloride stood at approximately 900,000 tonnes at Lianyungang Port, 270,000 tonnes at Zhanjiang Port, and around 210,000 tonnes at Qingdao Port.

8. [Ethylene Glycol] On August 10, total spot inventory of ethylene glycol at major East China ports was 344,000 tonnes, a decrease of 72,000 tonnes from the 416,000 tonnes recorded on July 30.

9. [TDI] On August 11, a major northern manufacturer set a fixed price of 18,000 RMB/ton to TDI sales via distribution channels to mid-August, an increase of 700 RMB/ton month-on-month. Supplies are allocated at 10% of the contracted volume, with no performance assessment standards.

10. [Styrene] On August 11, Lihuayi Weiyuan Chemical Co., Ltd. quoted its styrene at 8,600 RMB/ton, an increase of 100 RMB/ton from the previous trading day.