On July 22, 2026, most domestic commodity futures opened higher, with the energy and chemical sector delivering strong performance. Fuel oil surged over 4%, while crude oil and Shanghai silver rose more than 3%. Polypropylene (PP) and Polyethylene (PE) futures contracts followed suit, driving active market trading.
1. Crude Oil Rallies Sharply, Cost Support Strengthens
WTI crude oil futures settled at $82.49 per barrel, up 4.48% from the previous trading day; Brent crude settled at $88.10 per barrel, a gain of 4.60%. The strong crude rally directly boosted sentiment across the energy and chemical sector, with plastics raw material cost support notably strengthened.
2. PE/PP/PVC Spot Market Update
Boosted by the futures market rally, PE, PP, and PVC spot prices rose broadly today:
- PE (Polyethylene): Futures rose sharply, with LLDPE film-grade prices rising 135-225 CNY/ton. Traders raised offers in line with futures, and factories started restocking, with transaction volumes improving from prior periods.
- PP (Polypropylene): Futures surged strongly, with PP raffia prices rising 135-225 CNY/ton. Low-price offers tightened, and merchants tested higher prices.
- PVC (Polyvinyl Chloride): Key regional markets extended gains, with East China up ~100 CNY/ton and South China up 100-110 CNY/ton. Upstream producers raised ex-factory prices by 50-100 CNY/ton, with industry profitability expected to gradually recover.
3. Market Outlook
Analysts note that ongoing geopolitical tensions in the Middle East continue to affect crude oil supply expectations. Short-term crude oil is expected to maintain high-level consolidation, providing ongoing cost support for the plastics market. On the demand side, downstream sectors such as woven bags and films are still in the off-season, but market sentiment has clearly warmed. Short-term plastics prices are expected to remain firm with close attention to downstream restocking momentum.
Sources: SCI99, CLS, Sinopec data | As of July 22, 2026
