[Market Overview]
On July 3, 2026, international crude oil prices edged higher. WTI crude futures settled at $68.69/barrel, up $0.11; Brent crude futures at $71.80/barrel, up $0.23. The plastics industry composite index closed at 7,534 points, a modest gain of 0.24%.
[Commodity Plastics Market]
- Polyethylene (PE): PE price index at 8,126 points, down 0.53%. Divergent movements across grades: HDPE 7,660 (+10), LDPE 9,143 (-39), LLDPE 7,349 (-46). LLDPE led the decline as downstream buying interest remained subdued, with spot transactions driven by rigid demand.
- Polypropylene (PP): PP price index at 8,000 points, down 0.40%. PP spot price at 8,083.33 CNY/tonne; futures front-month at 7,275 points, up 1.95%. Futures and spot diverged — spot pressured by weak demand while futures rebounded on fund buying.
- PVC: PVC price index at 4,473 points, down 0.60%. PVC spot price at 4,355 CNY/tonne, extending its recent decline. Futures climbed 1.50% on July 3, but the basis rate at -2.25% signals lingering weakness in the physical market.
- ABS: ABS price index at 9,355 points, down 0.43%.
- PS: PS price index at 9,697 points, gaining a marginal 7 points.
[Upstream Feedstock]
- Ethylene (CFR Northeast Asia): $832/tonne, up $24/tonne
- Propylene (CFR China): $907/tonne, down $10/tonne
[Market Analysis]
Recent plastics market dynamics reflect a "futures-strong, spot-weak" pattern. Crude oil remains range-bound, limiting cost support; seasonal demand weakness continues to weigh on sentiment. PP futures staged a technical rebound on fund buying, but sustainability hinges on end-user demand recovery. PVC producers face high inventory pressure despite some plant maintenance, capping upside. PE linear grades remain under pressure amid the agricultural film off-season. Near-term, the plastics market is expected to remain range-bound — operators should monitor macro policy shifts and plant operating rates.
[Recycled Plastics]
Recycled PE index at 5,375 (-7), recycled PP at 5,760 (-40), recycled hard plastics at 5,483 (-135). Recycled plastics market extended its weakness with subdued trading activity.
