Liansu contract shrinks and reduces positions, and the futures price rebounds low

News: 1.
Sources expect LLDPE demand growth to stagnate this year due to demand disruptions caused by public health events, with demand expected to be about 54 million tons/year
in 2020.
Asia's PE production deficit is expected to be 14 million to 15 million mt/year
.
However, LLDPE demand is likely to rise
at a rate of 6 million tonnes per year in 2021.
2.
Shenhua coal chemical industry Shenhua Baotou linear intraday bidding volume of 1184 tons, the previous day's bidding volume of 1084 tons, intraday trading volume of 158 tons, the previous day's trading volume of 700 tons
.
Shenhua low-pressure intraday bidding volume is 150 tons, the previous day's bidding volume is 150 tons, the intraday trading volume is 0 tons, and the previous day's trading volume is 150 tons
.
Yulin High Pressure intraday auction volume was 82.
175 tons, the previous day's auction volume was 103.
2 tons, the intra-day trading volume was 0 tons, and the previous day's trading volume was 21 tons
.
Xinjiang high-pressure intraday bidding volume is 50 tons, the previous day's bidding volume is 50 tons, the intraday trading volume is 30 tons, and the previous day's trading volume is 20 tons
.

Market quotation: North China Daqing Petrochemical 7042 mainstream price is 7100 yuan / ton, -50
.

Warehouse receipt inventory: 338 warehouse receipts, +43
.
Main positions: Top 20 long positions 184124, -827; short positions 179848, -4924
.
Net increase
.

Summary: Recently, crude oil has maintained a high volatility pattern, forming a certain support
for chemicals.
Fundamentally, there are still many PE devices in China under maintenance recently, port inventories are still maintained at historical lows, and two barrels of oil and petrochemical inventories are also lower than the same period last year, indicating that the sales pressure of production enterprises is not large, and these factors are expected to have some support
for prices.
However, the recent flood disaster has a great impact on plastic downstream product enterprises, and the transaction volume of Shenhua net auction has decreased significantly during the day, indicating that the willingness to take goods at high prices in the middle and downstream is not strong
.
Operationally, it is advisable
for investors to temporarily trade in the range of 6950-7100.