Plastic Prices
LDPE
Month-on-month Change
Year-on-year Change
HDPE
Month-on-month Change
Year-on-year Change
PET
Month-on-month Change
Year-on-year Change
PP
Month-on-month Change
Year-on-year Change
PVC
Month-on-month Change
Year-on-year Change
PS
Month-on-month Change
Year-on-year Change
Limited buying returned to the plastics market in China, with some early signs of a demand increase for PET as the summer approaches.
Supply generally remains ample, and sources reported that the market is more balanced in China compared to other regions of the world.
The US plastics market was significantly more stable throughout June compared to the EU. Sources reported a quiet market with limited activity due to the uncertainty surrounding tariffs.
Production costs, with the exception of paraxylene, fell throughout June, with propylene declining markedly and consequently pulling down PP prices.
Price Drivers
↓ Ethylene
Although prices in Europe continued to fall, there was some increased demand in the US and China, although LDPE and HDPE prices in those regions moved only slightly throughout June.
↑ Paraxylene
The Brent crude oil price increased by 9.2% M-O-M in June to $63.73/barrel, representing a 15.7% Y-O-Y fall.
In June, crude oil prices rose due to escalating tensions in the Middle East, specifically missile strikes between Israel and Iran.
Players in the crude oil market were concerned throughout the month about supply disruption, especially following the use of ‘bunker buster’ bombs by the US on Iran.
↓ Propylene
Prices continued to trend downward in line with weakened demand. The biggest m-o-m fall was in the US propylene market, where continued uncertainty over US tariffs drove prices downward.
↑ Crude Oil
Throughout June, crude oil prices rose due to escalating tensions in the Middle East, specifically missile strikes between Israel and Iran.
Players in the crude oil market were concerned throughout the month about supply disruption, especially following the use of ‘bunker buster’ bombs by the US on Iran.
↑ Logistics
The shipping 40ft container composite rose by 46% month-on-month to $3,333 per unit in June. However, it is worth noting the high volatility of the index, as in the first half of June, the index grew dynamically against the backdrop of a surge in demand for transportation from Asia to the United States. Nevertheless, in the second half of the month, carriers quickly optimized their capacities and were able to quickly balance the market, after which container freight rates began to decline again.
→ Macroeconomic Environment
In the US, the CPI accelerated to 2.4% y-o-y in May, up from 2.3% in April. The figure was below market expectations of 2.5%.
In the Eurozone, the Harmonized Index of Consumer Prices (HICP) decelerated markedly to 1.9% y-o-y in May, down from 2.2% in the previous month, moving below the European Central Bank’s (ECB) 2% target for the first time in around four years.
In May, the headline CPI in China was –0.1% on an annualized basis, with the y-o-y rate of decline unchanged compared to April. Market sources believed the decline was chiefly due to a marked fall in energy prices, including crude oil.
Market Sentiment
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