News

MAJOR DEVELOPMENTS

U.S.–Iran Peace Memorandum Officially Signed on June 19 · WTI Crude Oil Plunges 9.5% to Below USD 77 · Brent Crude Falls Below USD 79 · Chemical Raw Materials Decline Sharply: PP Down 11.6%, Butadiene Down 13.7% and PVC Down 5.4% · Three Days Until Prime Day · Amazon to Enforce Country-of-Origin Compliance Requirements from June 30

THIS WEEK’S KEY SUMMARY

During the week of June 15–19, the international energy market reached a historic turning point. The U.S.–Iran Peace Memorandum was officially signed in Geneva, Switzerland, on June 19. The Strait of Hormuz is expected to resume commercial shipping within two to three months.

The announcement triggered a broad repricing across international oil markets. By the close of trading on June 19, WTI crude oil had fallen 9.53% for the week to USD 76.79 per barrel, while Brent crude oil declined 9.54% to USD 79.00 per barrel. Both benchmarks recorded weekly losses of nearly 10%, marking their sharpest weekly decline since 2024 and completely reversing the previous USD 8–12 geopolitical premium caused by the U.S.–Iran conflict.

China’s chemical raw-material market weakened alongside falling production costs. The main September 2026 polypropylene futures contract closed at RMB 7,647 per metric ton, down 11.6% for the week. PP raffia-grade spot prices were approximately RMB 9,350 per metric ton, down 3.84% week-on-week.

The main PVC futures contract closed at RMB 4,616 per metric ton, down 5.4% for the week, while benchmark PVC spot prices were approximately RMB 4,450 per metric ton, down 5.92% month-on-month. Spot polyester staple fiber prices were around RMB 7,539.81 per metric ton, down 4.07% for the week.

East China butadiene prices fell to RMB 9,806.67 per metric ton, representing a weekly decline of 13.7% and a monthly decline of 15.94%. SBS and SEBS markets remained relatively weak. The sharp correction in oil prices significantly reduced overall cost pressure on the raw-material side of the floor mat industry.

INDUSTRY UPDATE

Only three days remain until Prime Day 2026, scheduled for June 23–26. Inventory receiving windows have now closed, and FBA stock preparation has entered its final stage.

Amazon’s strengthened enforcement of country-of-origin compliance requirements will begin on June 30. Meanwhile, 54 days remain until the EU Packaging and Packaging Waste Regulation takes effect on August 12, further increasing compliance pressure.

The IEEPA refund CAPE system continues to move forward, and the first group of claimants has continued to receive refund payments.

Weekly Risk Level: Medium — Implementation of the U.S.–Iran agreement has improved cost conditions, but uncertainty remains in the oil market and compliance deadline pressure continues.