Market Overview
On June 12, global crude oil prices suffered a sharp sell-off. WTI crude settled at $83.73/barrel, down 4.54%; Brent crude closed at $86.39/barrel, down 4.41%. This followed a larger-than-expected U.S. inventory draw of 7.2 million barrels the previous week, yet bears maintained control of the market.
Resin Market Response
Key plastics resin indices softened marginally. PE price index declined 0.09% to 9,156 points; PP index fell 0.13% to 9,700 points; PVC index dipped 0.06% to 4,721 points. Polypropylene spot prices in China stood at 9,690 RMB/tonne, while futures contracts hovered around 8,504 RMB/tonne, with a persistent basis spread.
Upstream Feedstock
Ethylene CFR Northeast Asia dropped $30 to $898/tonne; Propylene CFR China held steady at $1,097/tonne; Styrene Asia rose $15 to $1,163/tonne.
Outlook
The crude oil plunge is expected to gradually transmit downstream to plastic resins. PE and PP spot prices may see correction room over the coming week. Focus on petrochemical plant operating rates and social inventory trends next week.
