Liansu increased positions and fell back, indicating that short-term weakness remains

News: The State Administration of Taxation of the Ministry of Finance issued an announcement: from November 1, 2018, the export rebate rate of plastic products will be increased to 16%.

This is good news
for the plastics industry.
In 2017, China's plastic products exports reached 11.
68 million tons, an increase of 12.
2%
over 2016.
In the process of trade frictions, market participants are worried about the export of plastic products, coupled with strict environmental inspections, which makes some market participants bearish
on the demand of the plastic industry.
The introduction of this policy is expected to stimulate the export of plastic products and boost market sentiment
.

Raw material price: naphtha CF Japan reported 639.
12 US dollars / ton, +0.
99%; FOB Singapore is trading at $69.
31/b, +1.
01%.

ethylene CFR Northeast Asia 1030 US dollars / ton, -3.
74%; CFR Southeast Asia was trading at $950/mt, -3.
06%.

Spot price: Southeast Asia quoted at $1130, +0%; Far East reported 1090 yuan / ton, -0.
93%.

Domestic price: North China Daqing reported 9600 yuan, -0%; East China Yuyao reported 9650 yuan, -0%; South China Guangzhou 9900 yuan, -0%; Northwest Dushanzi 9600 yuan, -0.
52%.

Liansu 1901 contract increased its position and fell, indicating that the short-term weakness is still there
.
Fundamentally, crude oil fell sharply, and ethylene price correction suppressed PE prices
.

Technically, the current futures price is in the correction process after the sharp decline, the MACD median has fallen, the KDJ low volatility, and the short-term trend is still weak
.
Operationally, investors are advised to hold
short orders with caution.