[Market Overview]
In July 2026, China's plastics market maintained a "supply-strong, demand-weak, inventory-stable" weak balance pattern. Domestic PE operating rates exceeded 74%, with increased import arrivals and ample supply. Downstream sectors including agricultural film and packaging saw low operating rates due to seasonal weakness.
[PVC Trade Alert]
On July 8, South Korea's Korea Trade Commission issued Announcement No. 2026-13, initiating anti-dumping investigation into suspension resin polyvinyl chloride (PVC) originating from China. The investigation was filed by Hanwha Corporation, marking a significant trade barrier for Chinese PVC exports.
On July 28, domestic PVC prices dipped slightly. The 5-type electric-g method averaged 5,580-5,680 CNY/ton in Guangzhou market. Traders offered flexibly while下游 buyers purchased on demand, with subdued trading activity.
[PE Market]
On July 28, linear polyethylene futures opened higher and fluctuated, supporting spot prices. However, downstream buyers adopted a cautious wait-and-see attitude. Yangzi 7042 was quoted at 8,480 CNY/ton (ex-tax) in East China, while Yanshan 1C7A was at 11,750 CNY/ton. Futures contract prices are expected to consolidate around 7,150 CNY/ton.
[PS & PP Market]
PS market sentiment remained bearish with weak downstream demand. Shantou market PH88 fell 50 CNY to 9,250 CNY/ton. PP market is expected to remain sluggish.
[Macro Data]
China's manufacturing PMI reached 50.3% in June, up 0.3 percentage points from the previous month, returning to expansion territory and signaling mild economic recovery.
[Outlook]
Despite crude oil rebounds providing cost support, fundamental supply-demand imbalances persist. Short-term plastics futures and spot prices are expected to consolidate. Market participants should monitor plant maintenance schedules and downstream demand changes.
