Crude Oil Prices Plunge, Easing Cost Pressure on Plastic Raw Materials
Published: July 1, 2026
International Crude Oil Price Trends
As of June 30, 2026, the light crude oil futures for August delivery on the New York Mercantile Exchange fell by $1.25 to settle at $69.50 per barrel, a decrease of 1.77%. August Brent crude oil futures dropped 23 cents to close at $72.92 per barrel, down 0.31%.
Upcoming Domestic Fuel Price Adjustment
The 13th round of refined oil price adjustment in 2026 will occur at 24:00 on July 3. As of now, 70% of the 10-working-day statistical period has been completed, with the three-place crude oil change rate reaching approximately -14%. Oil prices are expected to drop by 815 yuan/ton, equivalent to a reduction of about 0.7 yuan per liter. This will be the largest price drop this year, and domestic 92/95 gasoline will fully enter the "7 yuan era".
Impact on the Plastics Industry
Crude oil is the main upstream raw material for plastic materials (PE, PP, PVC, etc.). The decline in international oil prices will directly reduce plastic production costs:
- Polyethylene (PE): Weakening cost support, market prices under pressure
- Polypropylene (PP): Declining raw material costs, profit margins expected to improve
- Polyvinyl Chloride (PVC): Positive on the cost side, but demand-side changes need attention
Latest Market Developments from Sci99
According to Sci99's market briefing on June 30, 2026:
- Plastic woven raw material market prices rose slightly: PP pellets, PP powder, and LLDPE film material market prices all increased
- Futures markets showed strong fluctuations, boosting market sentiment
- Suppliers face little pressure to sell, with offers mostly raised
- Factory procurement enthusiasm has improved, but orders are limited in the off-season, and actual transactions are insufficient
Market Outlook
Sci99 expects that plastic woven raw material market prices will continue to rise in the near term. However, with international oil prices falling and cost-side support weakening, plastic market prices may face downward pressure. Market participants are advised to closely monitor crude oil price trends and downstream demand changes.
Data source: Sci99, Tencent News
