[PLAS FOB Report] Rising Oil Prices Boost Polymer Market – PP and PE Prices Climb

Brent crude oil prices remain above $100 per barrel, keeping petrochemical feedstock costs persistently high. After the National Day holiday, futures prices for polypropylene (PP) and linear low-density polyethylene (LLDPE) rose, primarily supported by higher energy costs and low inventory levels. Spot quotes for low-density polyethylene (LDPE) in Europe were adjusted upward due to rising raw material and substitution costs. The supply landscape for PP in Asia remains divergent, with plant restarts, maintenance shutdowns, and new capacity additions coexisting.

Price Trends of Major Grades (China FOB, USD/ton)

Note: Prices for certain grades edged down slightly, such as Yulong M70 (-1.35%) and Yulong ABS A-2020 (-0.90%), but the overall market trend remains upward.

Cost support is the primary driver of the current rally. Elevated crude oil prices have directly pushed up the costs of raw materials such as naphtha, ethylene, and propylene, while post-holiday restocking demand has provided further market support. Spot prices for PP and PE have generally risen in tandem. In the short term, cost support remains solid, but attention should be paid to downstream acceptance of high-priced raw materials and the pace of new capacity additions in Asia.