[PP Morning Brief] Spot Prices Are Expected to See Limited Gains Today

1. Key Points

1 、6/10: Instability remains in U.S.-Iran relations, heightening concerns over supply risks and pushing international oil prices higher. NYMEX crude oil futures for the July contract rose by USD 1.83/bbl to USD 90.03/bbl, up 2.07% from the previous period. ICE Brent crude futures for the August contract rose by USD 1.65/bbl to USD 93.10/bbl, up 1.80% month-on-month. China’s INE crude oil futures for the July 2026 contract fell by RMB 14.3 to RMB 573.1/bbl, while rising by RMB 11.1 in night trading to RMB 584.2/bbl.

2 As of June 10, 2026, China's total commercial inventory of polypropylene is 615,300 tons, an increase of 11,900 tons compared to the previous period, representing a month-on-month increase of 1.97%.

3 Details of domestic polypropylene plant changes: Jinneng Chemical's third line (450,000 tons/year) PP unit has restarted, while Zhongjing Petrochemical's first phase first line (500,000 tons/year) PP unit is undergoing maintenance shutdown.

4 On June 10, the average price of propylene in Northeast Asia on an FOB Korea basis held steady at USD 1,110/ton, while the CFR China average remained stable at USD 1,130/ton.

Core logic: Fears over geopolitical tensions have intensified again, sellers are reluctant to part with inventory, and spot prices have stopped falling and rebounded.

II. Price Form

3. Market Outlook

The Strait of Hormuz has been blocked again, and rising geopolitical tensions have heightened concerns. Stronger crude oil prices are providing clear cost support to the market. Driven by external risk sentiment, traders have become reluctant to sell, with insufficient willingness to offload at low prices. As market circulation tightens and available cargoes become scarcer, spot prices may be pushed to stop declining and rebound. Currently, the polypropylene spot market maintains a strong basis structure, but downstream end-users are still in the traditional off-season, with overall purchasing remaining cautious. In addition, several enterprises have already purchased PDH feedstock, strengthening expectations of a supply recovery. Spot price increases are expected to be limited today, with mainstream raffia-grade prices in East China likely to operate in the range of RMB 9,750–9,900/tonne.

Four, Data Calendar