Liansu closed slightly higher

News: From January to June 2020, the average operating rate of domestic polyethylene was 87.
11%.

The output totaled 9.
5689 million tons, an increase of 10.
61%
over 2019.
The total maintenance loss of the industry was 799,700 tons, an increase of 19.
3%
over the same period last year.
The amount of maintenance losses of polyethylene plants increased, but the output was still much higher than the same period last year, mainly due to the commissioning of new plants Baofeng Phase II, Zhong'an United, Zhejiang Petrochemical and Hengli Petrochemical
.
After the new production capacity is put into operation in the second half of the year, it is expected that production will continue to increase
further.

The two oil stocks were revised to 690,000 tons last day, and the intraday inventory was 71.
5, up 25,000 tons
from the previous day.
Shenhua Coal Chemical Industry Shenhua Baotou linear intraday bidding volume of 750 tons, previous day's bidding volume of 600 tons, intraday trading volume of 736 tons, last day's trading volume of 599 tons
.
Shenhua low-pressure intraday bidding volume was 100 tons, the previous day's bidding volume was 132 tons, the intraday trading volume was 20 tons, and the previous day's trading volume was 71 tons
.

Spot market: Most of the domestic polyethylene market prices are higher, and some have fallen
slightly.
The sales order opening part of the main region was raised by 50-200 yuan / ton, linear futures fluctuated slightly, the market offer was mostly higher, the downstream was more resistant to high prices, and the real transaction was general
.
As of the noon close, North China adjusted 50-100 yuan / ton, East China rose 50-200 yuan / ton, and South China rose 50-150 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 431 lots, +0 lots
within the day.
Main position: The top 20 long positions in the main contract are 243009 lots, -3663 lots, short positions are 236930 lots, -2818 lots, and net positions are 6079 lots, net long decrease
.

Summary: Recently, crude oil has maintained a high volatility pattern, but the epidemic in the United States seems to have been repeated, which is expected to hit
market confidence.
Fundamentally, the significant increase in cracker production in Asia in June is expected to weigh on
ethylene prices.
The operating rate of downstream enterprises fell slightly, which is expected to also put a certain pressure
on prices.
However, the maintenance volume of domestic PE equipment in June increased compared with May, and the recent shutdown and maintenance of the equipment may reduce the market supply
.
Operationally, investors can set a take profit in their hands and hold
them cautiously.