[Plastics Industry Daily — July 26, 2026]
Global crude oil futures sharply retreated on July 24 as geopolitical risk eased and the US dollar strengthened. WTI September contract fell $2.88 to settle at $89.31/bbl (-3.12%), while Brent September contract dropped $3.91 to $96.78/bbl (-3.88%). Despite the single-day selloff, both benchmarks still logged their third consecutive weekly gain, up 8.27% and 9.85% respectively for the week.
Plastic Futures: PVC Surges, PE and PP Consolidate at High Levels
China's petrochemical futures overnight session showed divergence amid oil volatility: LLDPE main contract settled at 7,990 CNY/MT, down 7 CNY; PP futures (drawn yarn grade) held flat at 8,470 CNY/MT; PVC main contract surged 38 CNY to 4,656 CNY/MT, displaying strong momentum.
Spot markets followed suit. According to JLC data (as of July 25): PE price index closed at 9,234 points (+40 points, +0.43% WoW); PP price index at 9,252 points (+27 points, +0.29%); PVC price index at 4,700 points (+13 points, +0.28%).
Supply-Demand Dynamics: Maintenance Dip Meets New Capacity Ramp-Up
China's domestic polyethylene market in July features a dual-track pattern: maintenance capacity declined in early-to-mid July with more units resuming mid-to-late month. Tarim Phase II new capacity officially came online, further intensifying supply-side pressure. Scipto data shows China's PE imports in June 2026 reached approximately 449,300 MT, continuing to hit multi-year lows.
Policy: Major Tailwind for Recycled Plastics Sector
The recycled plastics industry received historic policy support in 2026. The People's Republic of China Ecological Environment Code was passed and will take effect August 15. Seven ministries jointly issued the Recycled Materials Application Promotion Action Plan, setting a target of over 19.5 million MT in annual recycled plastic production by 2030 — opening substantial long-term growth runway for recycled PP and other segments.
Waste plastic recycling officially written into law signals profound supply-chain implications. Industry experts note that nucleating agent technology will be a key breakthrough for improving recycled PP performance, effectively addressing property degradation in reclaimed materials and enabling large-scale, high-quality recycled plastic applications.
Price Snapshot (July 25, 2026)
- LDPE Film Grade: 10,650 CNY/MT (flat)
- PP Drawn Yarn Grade: 9,850 CNY/MT (+100 CNY, +1.03%)
- PVC General Purpose (SG-5): 5,500 CNY/MT (flat)
- Premium GPPS: 10,400 CNY/MT (+50 CNY, +0.48%)
Sources: JLC, Scipto, Shanghai Shipping Exchange | Plastics Industry Index: 8,388 (+28, +0.33%)
