LLDPE demand remains weak Prices are expected to be weak

News: 1.
Longzhong Information reported on September 3 that the China-Security United Polyethylene Plant is scheduled to restart
on the 9th.
The plant involves a production capacity of 350,000 tons/year
.

2.
Longzhong Information reported on September 3: Dushanzi Petrochemical PE old full-density 1-line device stopped on July 15 and is expected to be driven on September 20, and the old full-density 2-line device stopped on June 26 and is expected to drive on September 16; The new low-voltage unit is expected to start up on September 12 on July 20, the new full-density first-line unit is expected to start on September 15 on July 20, and the second-line unit is scheduled to start on September 16 when it stops on July 20

Upstream raw materials market: The price of naphtha in the Japanese market continued to decline at $455.
63/ton, -2.
38
.
The ethylene Asian market is quoted in Northeast Asia at $890/ton, 0; in Southeast Asia, it is $830/ton, 0
.

Spot market: The transaction range of the domestic LLDPE spot market improved during the day, and the unit price
of enterprises increased.
North China market rose 20-70 yuan / ton, the mainstream price is 7220 yuan / ton, +70; East China market price rose 50 yuan / ton, the mainstream quotation is 7300 yuan / ton, 0; the mainstream price in South China market is 7450 yuan / ton, 0
.

Warehouse receipt inventory: exchange warehouse receipt reported 3413 lots, intraday - 240 lots; It is in the all-time high zone
.
Main position: The top 20 long positions in the main contract are 268049 lots, +83 lots, short positions are 314640 lots, -5079 lots, net positions are -46591 lots, net space increases
.

Summary: Affected by the worry of the international trade situation and other factors, international oil prices fell; Naphtha prices continue to fall, and cost support weakens
.
The results of petrochemical price reduction and destocking are gradually obvious, and the speed of upstream inventory and port inventory destocking is acceptable
.
However, the downward transmission of inventory is not smooth, downstream agricultural film orders follow up slowly, and the growth of starts is limited
.
Demand remains weak, and there is not
enough upward momentum to drive prices.
The L2001 contract fell back after testing the pressure near the 10-day moving average, focusing on the pressure around 7240 above and the support around 7070 below, and the price is expected to be weak and the rebound is limited
.
Operationally, it is recommended to trade
in the range of 7070-7240.