News

URGENT UPDATE

A framework for a 60-day U.S.–Iran ceasefire memorandum was reached on May 28 and is awaiting final approval from President Trump.

WTI crude oil fell below USD 87 per barrel, while Brent crude dropped below USD 92 per barrel. Oil prices plunged by more than 19% in May, marking their sharpest monthly decline since March 2020.

PP fell 4% for the week to RMB 8,497 per metric ton, while butadiene accelerated its decline to RMB 11,867 per metric ton.

Only 23 days remain until Prime Day, and 73 days remain until the PPWR deadline.

THIS WEEK’S KEY SUMMARY

During the week of May 25–30, international crude oil prices continued to fall sharply following the announcement of a framework for a 60-day U.S.–Iran ceasefire memorandum.

By the close of trading on May 30, WTI crude oil had fallen 9.56% for the week to USD 87.36 per barrel. Brent crude oil declined 11.10% to USD 91.89 per barrel, with both benchmarks returning below USD 90.

For the full month of May, Brent crude oil fell by more than 19%, while WTI declined by over 18%, marking their worst monthly performance since the COVID-19 shock of March 2020.

On May 28, U.S. and Iranian negotiators reached a framework agreement for a 60-day ceasefire memorandum. Its main provisions include unrestricted navigation through the Strait of Hormuz, Iran’s removal of sea mines within 30 days, and the lifting of the U.S. maritime blockade. However, the agreement still requires final approval from President Trump.

First Futures commented: “The downward trend in oil prices has been established. Selling on rebounds is recommended.”

China’s chemical raw-material market weakened broadly. The main September 2026 polypropylene futures contract closed at RMB 8,497 per metric ton, down 4.03% for the week. Spot PP raffia-grade material fell to approximately RMB 9,623 per metric ton, down 1.7%.

Spot polyester staple fiber prices declined to approximately RMB 7,850 per metric ton, down 3.1% for the week, while processing margins continued to weaken. The benchmark butadiene price fell to RMB 11,867 per metric ton, down 8.7% for the month.

PVC was the only material to rise against the broader downward trend, gaining 1.5% for the week to RMB 4,939 per metric ton, mainly due to a technical rebound from oversold levels.

INDUSTRY UPDATE

DOMOTEX asia, held in Shanghai from May 27–29, concluded successfully.

Prime Day is scheduled for June 23–26, with only 23 days remaining. The EU Packaging and Packaging Waste Regulation will take effect on August 12, with 73 days remaining.

Weekly Risk Level: Medium to Low — The U.S.–Iran ceasefire framework has improved the outlook and significantly reduced raw-material costs, but uncertainty remains regarding the agreement’s final approval.