1. Market Overview (July 15, 2026)
China's plastics raw materials market traded weaker on Tuesday, pressured by falling international crude oil prices. Both PE and PP futures opened lower, dragging spot market prices down. Market participants held a cautious outlook, with downstream factories procuring on an as-needed basis and overall trading sentiment subdued.
2. Futures Markets
- WTI Crude Oil: $68.58/barrel, down $0.92
- Brent Crude Oil: $71.57/barrel, down $1.38
- PE Futures: Linear futures opened lower and moved weakly
- PP Futures: Main contract continued to weaken
3. PE Market
China's PE spot market registered mixed-to-lower prices. Linear futures opened low and trended downward. Sinopec South China adjusted some factory prices lower, maintaining a weak market tone. LLDPE prices fell 25-165 CNY/ton. Reference prices in South China: Maoming Petrochemical 2426K at 9,600-9,650 CNY/ton (tax included, delivered).
4. PP Market
PP spot market showed weak consolidation. Futures remained low and volatile. Traders mostly offered concessions to move inventory. PP raffia prices dropped 10-200 CNY/ton. Downstream buyers remained cautious, maintaining just-in-time procurement. South China PP raffia reference: 7,150-7,200 CNY/ton (delivered).
5. PVC Market
PVC prices held steady with slight downward pressure. Futures traded choppy. Trading was light, with distributors selling at modest concessions. Calcium carbide-based PVC Type 5 in South China held around 5,780-6,000 CNY/ton.
6. Market Outlook
According to SCI Analytics, July PE output losses from maintenance are declining as new capacity comes online, increasing domestic supply pressure. The agricultural film sector is entering its off-season, weakening demand support. PE prices may continue drifting lower in the near term. PP may consolidate weakly as the woven bag sector's off-season fades but demand recovery remains slow.
7. Corporate News
Huasu Holdings (000509.SZ) released its H1 2026 profit warning on July 15, expecting a net loss of 12-18 million CNY, citing raw material price volatility and weak market demand.
Sources: SCI99, Longzhong, Mysteel. Prices are reference only. This report is for informational purposes only and does not constitute investment advice.
