Continuous plastic range oscillation, downstream enterprises procurement cautious

News: Recently, ExxonMobil Huizhou ethylene phase I project was approved by the Guangdong Provincial Development and Reform Commission
.
The project plans to build 1.
2 million tons/year crude oil direct cracking ethylene and downstream polymer plants and supporting facilities, the main plants include: 1.
2 million tons/year ethylene cracking plant, 850,000 tons/year linear low-density polyethylene plant, 500,000 tons/year low-density polyethylene plant, 450,000 tons/year impact copolymer polypropylene plant, 400,000 tons/year average polypropylene plant and other chemical production plants
.
The total investment is 34.
290 billion yuan (including 532 million US dollars in foreign exchange).

Spot market: The domestic polyethylene market atmosphere is weak, and the center of gravity of the real market has shifted
downward.
The low-pressure price of the main regional sales company was partially reduced, and the high-pressure and linear majority were stable
.
Merchants mainly ship, the offer is loose, the downstream just needs to take the goods, and the transaction is light
.
As of noon, the price in the North China market was 30-100 yuan / ton; The East China market fell by 50 yuan / ton; The South China market is temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 1161 lots, intraday +0 lots; It is in the low-to-middle historical zone
.
Main position: the top 20 long positions in the main contract are 156564 lots, -3772 lots, short positions are 180545 lots, -5919 lots, net positions are -23981 lots, and the net margin is reduced
.

Summary: China and the United States are expected to cancel tariffs in phases, and after entering late October, the demand for plastic home film is expected to gradually recover, the operating rate of agricultural film enterprises has rebounded, and PE inventories are still in the low area, indicating that the market supply pressure is not large, which has some support for LLDPE, however, the International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the growth rate was the lowest in 10 years, which hit market confidence, and international crude oil fell sharply, and the second round of environmental protection inspections began.
Downstream companies are cautious in purchasing, and these factors are expected to suppress
LLDPE.
In terms of operation, it is recommended that investors wait and see in the short term
.