Liansu opened slightly higher and the spot price loosened

News: Bob Patel, CEO of LyondellBasel, recently predicted that the global polyethylene (PE) market will remain tight
this year and next.
"In 2017, we achieved near-full ethylene and polyethylene capacity utilization worldwide
," Pate said.
Supply growth outpaced demand growth by less than 1%
in 2017-2018.
"For high-density polyethylene (HDPE), demand growth will outpace supply growth by about 1.
5%
in 2018.
He expects overall global PE supply and demand growth to be close to equilibrium in 2019, while HDPE demand growth will once again outpace supply growth
.

Raw material price: naphtha CF Japan reported 693.
62 US dollars / ton, up 1.
76%; FOB Singapore was trading at $75.
76 a barrel, up 1.
79%.

ethylene CFR Northeast Asia 1335 US dollars / ton, flat; CFR Southeast Asia was flat at $1230/mt
.

Spot prices: Southeast Asia was flat at $1,130; Far East reported 1100 yuan / ton, unchanged
.
Domestic prices: North China Daqing reported 9600 yuan, down 100 yuan; East China Yuyao reported 9600 yuan, flat; South China Guangzhou 9750 yuan, flat; Northwest Dushanzi 9650 yuan, flat
.

The Liansu 1901 contract opened slightly higher, and it was sideways around the intraday moving average throughout the day, with a slight reduction in holdings and a temporary truce between the long and short sides
.
Fundamentally, the loosening of spot prices and a slight recovery of social inventories have put certain pressure
on futures prices.

Technically, the MACD indicator is moving to the downside at a high level, but the KDJ indicator has begun to enter the oversold area and there are signs of a low golden cross, combined with the support level below, it is expected that the downside has been relatively limited
.
In terms of operation, it is recommended that investors can reduce their short orders at low prices, and drop their pockets for safety; Activist investors with short positions can tentatively open long orders and grab a rebound
on the dip.