LLDPE remains weak and volatile and prices have insufficient momentum to the sharp upside

News: 1.
According to China Plastic Information, as of July, the cumulative diene yield of the ethylene plant of Maoming Petrochemical Chemical Division reached 48.
81%, an increase of 0.
65 percentage points year-on-year, a record new
.

2.
It was learned from the Maoming Municipal Government website that on August 17, Donghua Energy plans to jointly invest in the construction of a comprehensive utilization project
of propane resources in Maoming.
According to the industrial development of the new area, the third phase uses 4 sets of PDH plants to build ethylene plants, butadiene plants and polyethylene plants with corresponding production capacity using 4 sets of by-product ethane gas and some propane or butane plants, with a total investment of about 16 billion yuan
.

Upstream raw materials market: Naphtha prices stopped falling and rebounded, and the market price in Japan was 463.
88 US dollars / ton, +0.
49%.

Ethylene prices in Asia continued to fall, with prices in Northeast Asia at $930/ton, -1.
59%; In Southeast Asia, it was $840/mt, -1.
75%.

Spot market: LLDPE spot prices remained basically stable, with only a slight adjustment
in North China.
The price in the North China market is mixed, the adjustment range is 10-50 yuan / ton, and the mainstream quotation is 7480 yuan / ton, +10
.
The mainstream quotation in East China is 7550 yuan / ton
.
The mainstream quotation in South China is 7600 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 2066 lots, +0 lots within the day; In the historical median zone
.
Main position: The top 20 long positions in the main contract are 200242 lots, +1222 lots, short positions are 251992 lots, +4864 lots, and the net position is -51750 lots, and the net short is increased
.

Summary: Supported by the Saudi oil field being attacked by drones, international oil prices continued to rise, and naphtha prices stopped falling and rebounded, forming a certain support
for costs.
On the supply side, polyethylene production and imports increased significantly year-on-year, and there are still plans to invest in new capacity in the later period; Downstream demand is still light, and the growth of agricultural film starts is slow
.
The problem of supply and demand pressure is prominent, and the driving force of the price is insufficient
to drive the sharp upward momentum.
L2001 prices opened higher, retreated after testing pressure near the 20-day moving average above, and closed in
a narrow range at the end of the day.
Pay attention to the pressure around 7530 above, pay attention to the support around 7400 below, the price is expected to be weak and volatile, it is recommended to reduce the position of the short order in the hand
.