Crude Oil Plunges Again: WTI Breaks Below $91, PVC Futures Extend Losses, PE Consolidates at Lows, PP Faces Downward Pressure
Market Daily — June 6, 2026
On June 5, international crude oil futures suffered another sharp decline. WTI July contract settled down 2.69% at $90.54/barrel; Brent August contract fell 2.04% to $93.09/barrel. During intraday trading, WTI touched $92.18 and Brent hit $92.28, with both benchmarks falling over 2%. Oil prices declined for a second consecutive session as demand concerns intensified.
Crude Oil Market: Demand Concerns Mount, Prices Extend Decline
This week's crude market showed a pattern of early gains followed by late selloffs. Early in the week, WTI rebounded to $93.76 and Brent touched $96, supported by escalating US-Iran tensions over the Hormuz Strait. However, bearish factors converged later: unexpected US crude inventory builds, weak Chinese manufacturing data, rising expectations of OPEC+ July production increases, and a stronger US dollar drove prices sharply lower from highs.
Market focus shifts to China's June 18 refined oil price adjustment window, with the current crude change rate at -1.06%, projecting a 60 CNY/ton reduction, equivalent to approximately 0.04-0.05 CNY/liter for gasoline and diesel. Continued oil price weakness could expand the cut.
PVC Market: Futures Extend Decline, Spot Market Weak
PVC main futures contract continued weakening to 4,767 CNY/ton, down 1.87% on the day. The deferred PVC2609 contract stood at 4,808 CNY/ton, down 50 CNY. Spot market: carbide-based SG-5 PVC ranges 4,650-4,850 CNY/ton. Maintenance-related supply cuts are easing as more plants restart; demand remains subdued with downstream processors cautious on purchases. Weakening crude cost support adds to downward pressure; short-term PVC likely to remain weak and range-bound.
PE Market: Consolidating at Lows, Futures Edge Lower
LLDPE main futures contract at 7,908 CNY/ton, down 0.23%, with intraday low of 7,828 CNY/ton. Volume: 367,100 lots, open interest: 383,500 lots. Spot market prices mixed among petrochemical producers, maintaining a consolidation pattern. June PE maintenance losses dropped by ~188kt, supply gradually recovering while demand enters off-season. Short-term outlook: weak consolidation.
PP Market: Post-May Strength, June Faces Downward Pressure
May's domestic PP market showed an oscillating uptrend with monthly average prices rising, driven by cost support and low operating rates creating tight spot supply. However, June faces downward pressure: some spring maintenance units restarting slightly increases supply, while demand enters off-season with weak new orders and mounting operating pressure on downstream firms. PP futures July at 9,303 CNY/ton, September at 8,685 CNY/ton. Short-term: expected oscillating decline, monitoring crude volatility and supply changes.
Market Outlook
Consecutive crude oil declines continue to erode plastic raw material cost support. WTI has broken below $91; a further test of the $90 level could trigger another round of price corrections in plastics. Key watchpoints: 1) OPEC+ July production policy adjustments; 2) Middle East geopolitical escalation risks; 3) Domestic downstream operating rate improvements with summer demand. Short-term strategy: remain cautious and monitor crude trends and downstream restocking pace.
