Liansu contracts edged higher and downstream demand is expected to recover slowly

News: The apparent consumption of PE in December 2019 was 3.
1205 million tons, an increase of 5.
45%
over the previous month.
The apparent consumption of HDPE was 1,386,400 tons/month, the apparent consumption of LLDPE was 1,180,700 tons/month, and the apparent consumption of LDPE was 553,400 tons/month
.

As of February 14, China's polyethylene production totaled 354,800 tons, a year-on-year decrease of 3.
89% from last week, and high pressure and linearity decreased, with reductions of 0.
37 and 13,100 tons respectively; The low pressure increased by an increase of 24,000 tons
.
Two barrels of oil and petrochemical inventories reached a new high of 1.
62 million tonnes, up 70,000 tonnes from Friday and 485,000 tonnes
higher than a year earlier.
Shenhua coal chemical linear intraday bidding volume of 750 tons; The transaction volume was 32 tons, the high-pressure bidding volume was 423 tons, the transaction was 0 tons, and the low-pressure bidding volume was 450 tons, and the transaction volume was 0 tons
.
Weak spot market transactions indicate that downstream demand remains weak
.

Spot market: domestic polyethylene market price adjustment
.
The opening price of the sales company continued to fall, the range was 100-200 yuan / ton, linear futures fluctuated slightly, linear spot prices rose slightly, but high pressure and low pressure transactions were not smooth, and the center of gravity continued to shift
.
As of the noon close, the North China market adjusted 50-200 yuan / ton; East China market down 50-200 yuan / ton; South China fell by about
50 yuan / ton.

Warehouse receipt inventory: exchange warehouse receipts reported 2442 lots, intraday - 28 lots
.
Main position: The top 20 long positions in the main contract are 172846 lots, -2023 lots, short positions are 231820 lots, +118 lots, net positions are -58974 lots, net space increases
.

Summary: The inventory of domestic polyethylene enterprises continued to rise significantly, petrochemical enterprises mainly reduced prices and promoted inventory, and spot prices fell
.
In the spot market, Shenhua Polyethylene online bidding commodities are rarely traded, indicating that downstream demand is sluggish, and traders and demanders have no willingness to
purchase.
Affected by the sluggish demand, the resumption rate of downstream enterprises is not high, and the supply pressure of the polyethylene market is still large
.
However, as the outbreak eases, downstream demand is expected to recover
slowly this week.
Operationally, it is recommended that investors wait and see for the time being
.