Downstream demand has improved

News: Shenhua coal chemical industry Shenhua Baotou linear intraday bidding volume of 642.
15 tons, the previous day's bidding volume of 610 tons, intraday trading volume of 492.
15 tons, the previous day's trading volume of 10 tons
.
Shenhua low-pressure intraday bidding volume was 450 tons, the previous day's auction volume was 732 tons, the intraday trading volume was 250 tons, and the previous day's trading volume was 262 tons
.
Xinjiang high-pressure intraday bidding volume is 50 tons, the previous day's bidding volume is 50 tons, the intraday trading volume is 0 tons, and the previous day's trading volume is 10 tons
.

In April 2020, China's plastic products output was 6.
118 million tons, a year-on-year increase of 6.
1%; From January to April, the total output of plastic products in China was 19.
064 million tons, a year-on-year decrease of 14.
3%.

Spot market: The domestic polyethylene market is mostly up
.
The sales unit price of the main region was partially increased by 50-200 yuan / ton, linear futures rose, the supply of some sources in the market was insufficient, merchants continued to rise, the downstream high price resistance was obvious, and the real transaction was not good
.
As of the midday close, the North China/East China market was up 50-150 yuan / ton, and the South China market was up 50-100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 862 lots, intraday -0 lots
.
Main position: the top 20 long positions in the main contract are 249985 lots, -3357 lots, short positions are 285835 lots, +5704 lots, net positions are -35850 lots, net short increases
.

Summary: The overseas epidemic seems to be showing signs of easing, vaccine research has also been positive, which has boosted market confidence, and the voluntary reduction of production by major oil-producing countries has also supported
the market.
In the industrial chain, the current import profit is still at a high level, it is expected that the import source will be concentrated in May to the port, this factor will suppress the price, but LNG prices, crude oil, ethylene prices have rebounded significantly, improving the linear cost support, and the production of plastic products in April continued to rise significantly month-on-month, indicating that downstream demand has improved, and two barrels of oil and petrochemical inventories continue to decline
steadily.
These factors will form a certain support
for Liansu.
Operationally, investors can hold long positions with caution
.