Liansu opened high and fluctuated, and market prices were generally lower

News: An explosion occurred at a device at the PRefChem refinery in Johor, Malaysia, on the night of the
15th.
The refinery is equipped with 1.
2 million tons/year ethylene, 600,000 tons/year propylene, 180,000 tons per year butadiene, 900,000 tons/year PP, 400,000 tons/year HDPE, 350,000 tons/year LLDPE and other units
.
Following the explosion, the refinery was system-wide.

Shenhua Coal Chemical Linear intraday bidding volume was 950 tons, with a trading volume of 10 tons and a transaction rate of 1.
05%; The high-pressure auction was 360 tons, the transaction volume was 0 tons, and the low-pressure auction was 600 tons, the transaction volume was 30 tons, and the transaction rate was 5%.

Domestic polyethylene market prices are generally lower
.
The opening price of the main regional sales company was partially reduced, the range was 50-150 yuan / ton, linear futures opened at a wide range, the market operator was pessimistic, and the merchants lowered the offer, but the transaction was still not smooth
.
As of the noon close, the North China market fell 30-100 yuan / ton; East China market fell 50 yuan / ton; The South China market fell 50-150 yuan / ton
.

Spot market: The domestic polyethylene market price is generally lower
.
The opening price of the main regional sales company was partially reduced, the range was 50-150 yuan / ton, linear futures opened at a wide range, the market operator was pessimistic, and the merchants lowered the offer, but the transaction was still not smooth
.
As of the noon close, the North China market fell 30-100 yuan / ton; East China market fell 50 yuan / ton; The South China market fell 50-150 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 1131 lots, intraday - 180 lots
.
Main position: The top 20 long positions in the main contract are 144052 lots, +2984 lots, short positions are 171684 lots, +2081 lots, and net positions are -27632 lots, with a decrease
in net shorting.

Summary: The accelerated spread of the overseas epidemic has caused market panic, and the absolute value of the domestic two barrels of oil and petrochemical inventories is still high, indicating that downstream demand has not fully recovered, crude oil is running weakly, showing that the pressure above is still large, and Shenhua online auction trading volume continues to maintain a historical low level, indicating that downstream demand has not yet recovered
.
These factors suppress linear prices to some extent
.
The future market focuses on whether crude oil can stop falling and rebound
.
Operationally, it is recommended that investors wait and see for the time being
.