Liansu contracts closed slightly higher, and downstream demand 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 612 lots, intraday -250 lots
.
Main position: The top 20 long positions in the main contract are 251567 lots, +1582 lots, short positions are 283659 lots, -2176 lots, and net positions are -32092 lots, with a decrease
in net shorting.

Summary: The overseas epidemic has eased, the deregulation of many countries has boosted market confidence, and the voluntary reduction of production by major oil-producing countries has also supported
the market.
Fundamentally, supply pressures eased
significantly last week.
The two barrels of oil and petrochemical inventories fell sharply by 19.
4% month-on-month, also lower than the same period of the previous year
.
Demand: Demand for agricultural film continued to weaken, but the demand for the pipe industry rose significantly, and the gradual increase in infrastructure projects led to strong demand for pipes, and the operating rate remained high, indicating that downstream demand has improved
.
PE import profits rose in May, and imports are expected to increase accordingly, with delivery times expected to be concentrated in late May to June
.
Therefore, in the later stage, we should focus on the impact of
overseas low-priced sources on the domestic market.
In terms of operation, investors are advised to hold
long positions with caution.