International Crude Oil Prices Hit Four-Month Low, Plastics Market Remains Weak
June 26, 2026 Market Update
1. Crude Oil Market Dynamics
At the European session open on June 25, international crude oil prices continued to decline. Brent crude fell 0.59% to $72.95/barrel, consecutively losing the $73 mark; WTI crude lost the $70/barrel level, trading at $69.60, down 0.39%. Both Brent and WTI crude hit new lows since the US-Iran conflict erupted on February 28.
The first round of US-Iran peace talks concluded with positive progress. Meanwhile, the US Treasury temporarily relaxed restrictions on Iranian petroleum product exports, potentially easing global energy supply tensions and putting downward pressure on oil prices.
2. Plastics Market Overview
PVC Market: The national mainstream market average price was reported at 4,485 yuan/ton, down 12.14 yuan/ton or 0.27% from the previous trading day. In East China, the mainstream transaction range for Type 5 spot delivery was 4,400-4,520 yuan/ton. Market trading sentiment remained poor, with sellers showing strong fear of further declines and lowering prices to move inventory.
PP Market: Polypropylene spot prices ranged between 9,656-9,706 yuan/ton. Futures continued to seek bottom levels with poor trading sentiment. Most upstream petrochemical manufacturers lowered ex-factory prices, and spot quotation centers shifted downward.
PE Market: Overall polyethylene demand remained weak. In East China, LLDPE selling quotations were around 7,500 yuan/ton, but buyer demand was sluggish with low actual transaction volumes. The overall market remained in a weak oscillation pattern.
3. Market Outlook
Influenced by continuously falling crude oil prices, cost support for the plastics market has weakened. PP, PE, and PVC are expected to continue their weak oscillation trend in the short term. Traders generally adopt a wait-and-see strategy, with the market lacking substantive positive drivers. End-user procurement remains need-based. Attention should be paid to crude oil price trends and downstream demand recovery.
Data Sources: CNGold, SCI99, 100PPI
