Liansu's main force rebounded slightly, and the short-term upside is limited

News: Polyolefin inventories in major domestic ports rose this week, totaling 221,400 tons as of December 13, an increase of 6,000 tons from last week and a decrease of 47,300 tons
from the same period last year.
This is the first time in many weeks that the inventory of major domestic ports has stopped falling and rebounded
.

In October 2019, the total export volume of PE was 28,200 tons
.
Among them, the export volume of LDPE was 08,500 tons, an increase of 26.
87% over the previous month; The export volume of HDPE was 16,300 tons, an increase of 89.
53% over the previous month; LLDPE exports were 0.
34 tons, an increase of 78.
95%
over the previous month.
In October 2019, PE imports were 1.
3365 million tons
.
Among them, LLDPE imports were 425,200 tons, HDPE imports were 643,000 tons, and LDPE imports were 268,300 tons
.

Spot market: The atmosphere of the domestic polyethylene market is on the upward side, and the trading center of gravity is moving
upward.
The low-pressure price of the main regional sales company was lowered, and the linear price was raised, with a range of 50-100 yuan / ton
.
Linear futures rose slightly, merchants' offers adjusted with the market, some quotations moved up slightly, and the downstream just needed to take goods, and the transaction was general
.
As of the noon close, the North China and East China markets adjusted 50-100 yuan / ton; The low pressure in the South China market fell by about 50 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 1291 lots, +150 lots
within the day.
Main position: The top 20 long positions in the main contract are 174915 lots, +3143 lots, short positions are 246602 lots, +8098 lots, and the net position is -71687 lots, with a net increase
in net shorting.

The average operating rate of polyethylene enterprises this week was 92.
04%, a decrease of 1.
8%
compared with the previous cycle data (93.
84%).
Demand in the Asian market is lukewarm, and participants are waiting and seeing
amid economic uncertainty.
In India, where demand is stable, production of tarpaulins in India has already begun, with the Philippines restarting its 2 polyethylene plants and 1 polypropylene plant
in Batangas at the end of December.
In the middle of the month, resources from Iran and Exxon will be concentrated in Hong Kong; The overall operating rate of downstream agricultural film enterprises was 41.
6%, -0.
7%
week-on-week.
The operating rate of shed film enterprises was about 44.
2%, and the week-on-week was -3.
2%.

Demand has slowed down, and the operating rate of mulch film enterprises is 36.
3%, +4.
6%
week-on-week.
The bidding orders for mulch film in the northwest and southwest regions were implemented, the start of enterprises increased, and the total inventory of PE of the two barrels of oil rose, up 6.
84%
from last week.
Among them, Sinopec's PE inventory increased by 14.
22% from last week; CNPC PE inventories rose 3.
54%
from last week.

In general, the first phase of Sino-US trade agreement has given a certain boost to the market, but the LLDPE market production and sales are not strong, and the total inventory of PE in the two barrels of oil has rebounded, indicating that environmental protection inspections not only have an impact on production enterprises, but may have a greater
impact on downstream demand enterprises.
In mid-December, Iranian and Exxon resources concentrated some of the cargo at the port
.
It is also expected to increase the supply pressure
in the polyethylene market.
Short-term continuous plastic upside is limited
.
In terms of operation, investors can reduce their holdings at high prices and drop their pockets for safety
.