Liansu weak finishing may maintain a range-bound pattern

News: In September 2019, domestic PE imports were 1.
34 million tons, down 143,200 tons, or 9.
66%.

Year-on-year increased by 135,000 tons, or 1.
2%.

From January to September, China imported a total of 12.
3484 million tons of PE, an increase of 1.
8518 million tons over the same period last year, an increase of 18%.

In September 2019, domestic PE exports were 17,200 tons, down 9,080 tons, or 34.
55%.

It increased by 3,200 tons, or 22.
86%.

From January to September, China exported a total of 199,200 tons of PE, an increase of 37,000 tons over the same period last year, an increase of 23%.

Spot market: The domestic polyethylene market is volatile and narrow.

In terms of petrochemicals, the sales company's price was partially adjusted, the low voltage and linear parts were narrowly adjusted, and the high pressure was stable
.
Linear futures fluctuated slightly, merchants were cautious, offers were mixed, the adjustment was not large, North China pollution orange warning was lifted, and enterprise starts increased slightly, but the enthusiasm for taking goods was still average
.
As of the noon close, the North China and East China markets adjusted 50-100 yuan / ton; The South China market is temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 1661 lots, intraday -10 lots; In the historical median zone
.
Main position: The top 20 long positions in the main contract are 199410 lots, +1530 lots, short positions are 202977 lots, -512 lots, net positions are -3567 lots, and the net margin is reduced
.

Summary: Crude oil stopped falling and rebounded, the Sino-US trade dispute showed signs of easing, and after entering late October, the downstream demand for plastics gradually recovered
.
This has some support for LLDPE, however, the International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the lowest growth rate in 10 years, which hit market confidence, and the second round of environmental protection inspections opened, downstream enterprises were cautious in purchasing, and domestic PE social inventory stocks rebounded
slightly.
In addition, ethylene trends in Asia continue to weaken, and these factors are expected to suppress
LLDPE.
It is expected that Liansu may maintain a range-bound pattern
.
Operationally, investors continue to hold short orders at 7400 to the 7400 line
.