Continuous plastic sideways position volume increased significantly

News: On August 30, the first phase of the 300,000 tons/year LDPE/EVA project of Yanchang China Coal Yuneng Chemical Company broke ground
.
The project uses polymeric grade ethylene and vinyl acetate as raw materials, Basel company provides process technology, Daqing Petrochemical Engineering Construction Company is responsible for design, procurement and construction, mainly including compression unit, polymerization unit, separation unit, extrusion granulation unit, degassing unit, etc
.
, and is scheduled to be completed in August 2020.

Raw material price: naphtha CF Japan reported 672.
38 US dollars / ton, down 1.
01%; FOB Singapore was trading at $73.
2 a barrel, down 1.
17 percent
.
ethylene CFR Northeast Asia 1330 US dollars / ton, down 5 US dollars; CFR Southeast Asia was trading at $1225 a tonne, down $
5.

Spot prices: Southeast Asia was flat at $1,130; Far East reported 1095 yuan / ton, unchanged
.
Domestic price: North China Daqing reported 9500 yuan, flat; East China Yuyao reported 9,500 yuan, flat; South China Guangzhou 9700 yuan, flat; Northwest Dushanzi 9600 yuan, flat
.

The Liansu 1901 contract was sideways around the intraday moving average throughout the day, and the position increased significantly, and the long and short sides temporarily reached a balance
.
Fundamentally, ethylene prices have fallen, and a slight recovery in social inventories has put certain pressure on futures prices, but spot prices have stabilized, and petrochemical prices have supported it
.

Technically, the MACD indicator oscillated and retreated, but the green column gradually shortened, and the KDJ indicator began to enter the oversold area and had a low golden cross upward, combined with the support level below, it is expected that there is a possibility
of a rebound in the short term.
In terms of operation, it is recommended that investors can reduce their short orders at low prices, and drop their pockets for safety; Activist investors with short positions can tentatively open long orders and grab a rebound
on the dip.