Market demand is light, and the main LLDPE contract fluctuates higher

News: Longzhong Information reported on September 4: Shenhua Xinjiang PE plant production capacity of 270,000 tons / year, stopped on August 15, qualified products were released on September 22, and stopped and overhauled for a total of 38 days
.

Upstream raw materials market: The price of naphtha in the Japanese market continued to decline at $449.
5/ton, -6.
13
.
The ethylene Asian market is quoted in Northeast Asia at $890/ton, 0; in Southeast Asia, it is $830/ton, 0
.

Spot market: Domestic LLDPE spot market prices continue to rise
.
North China market adjusted 20-100 yuan / ton, the mainstream price is 7200 yuan / ton, -20; East China market price increased 50 yuan / ton, the mainstream quotation is 7300 yuan / ton, 0; South China market rose 50-100 yuan / ton, the mainstream price is 7450 yuan / ton, 0
.

Warehouse receipt inventory: exchange warehouse receipts reported 3383 lots, intraday -30 lots; It is in the all-time high zone
.

Main position: the top 20 long positions in the main contract are 257629 lots, -9363 lots, short positions are 296818 lots, -15278 lots, net positions are -39189 lots, and the net margin is reduced
.

Summary: Naphtha prices continue to be weak 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.
L2001 contract price volatility higher, upward breakthrough near the 10-day moving average pressure, above the focus on pressure around 7350, is expected to continue the rebound trend, but in the case of the fundamentals are short, the rebound may be limited
.
In operation, it is recommended to sell high and suck
low in the range 7180-7350.