Market Overview
On July 2, 2026, China's commodity futures market showed divergent trends, with the energy and chemical sector leading the decline. Affected by the sharp drop in international crude oil prices, plastics futures weakened across the board.
Crude Oil Market Dynamics
WTI crude oil futures settled at $68.58/barrel, down $0.92. Brent crude oil futures switched months and settled at $71.57/barrel. US President Trump stated that the latest round of talks between the US and Iran in Qatar has made progress, and market concerns about supply risks in the Strait of Hormuz have eased, putting downward pressure on oil prices.
In domestic commodity futures, crude oil fell more than 5%, PX dropped over 4%, PTA and fuel oil fell more than 3%, liquefied gas and methanol fell over 2%.
Plastics Futures Performance
The main LLDPE contract settled at 6,798 yuan/ton, down 110 yuan, a decline of 1.59%. PP futures settled at 7,127 yuan/ton, down 69 yuan. PVC futures settled at 4,392 yuan/ton, down 64 yuan.
In terms of price indices, the plastics industry index stood at 7,534 points, up 18 points; PE price index at 8,126 points, down 43 points; LLDPE price index at 7,349 points, down 46 points; PP price index at 8,000 points, down 32 points; PVC price index at 4,473 points, down 27 points.
Upstream Raw Material Quotes
Propylene monomer CFR China was reported at $917/ton, unchanged; FOB Korea at $887/ton, unchanged. Ethylene monomer CFR Northeast Asia was reported at $832/ton, up $24; CFR Southeast Asia at $822/ton, up $34.
Market Outlook
Looking ahead to July, various product markets are expected to continue low-level fluctuations. The Indian government has extended the tariff exemption policy for about 40 key petrochemical products from the original June 30, 2026 deadline to July 15, 2026, providing some support to the market. However, with the geopolitical risk premium fading, weakening oil prices will continue to put pressure on plastics prices.
Source: Jinlianchuang, FX678 | Published: July 3, 2026
