Market panic eases and the Lianplastic contract opens low and goes higher

News: As of February 27, the total output of domestic polyethylene enterprises was 1.
41 million tons, down 252,300 tons
from the previous month.
Subject to the greater pressure on inventory, enterprises reduced their load, down 4.
82%
month-on-month.
Although petrochemical production enterprises have reduced their warehouses relatively quickly, there are signs that
upstream inventories have been transferred to intermediate links and have not been digested downstream.
At present, the operating rate of polyethylene linear film is better, maintaining more than 80%, while the overall operating rate of agricultural film enterprises is maintained at 30-40%, and the operating rate of packaging film enterprises is 28.
2%, which is also in the low area, from the above data, it will take time for PE demand to recover
.

Shenhua coal chemical linear intraday bidding volume of 1000 tons; The trading volume was 0 tons, the high-pressure auction volume was 338 tons, and the transaction was 0 tons, unchanged from the previous trading day, and the low-pressure auction volume was 539 tons, and the transaction volume was 102 tons
.

Spot market: The domestic polyethylene market is mixed
.
The low-pressure price of the main regional sales company was partially raised, with a range of 100 yuan / ton, and the rest was stable
.
Linear futures are higher, merchants have a wait-and-see attitude, and they adjust offers according to supply and demand, and the real trading atmosphere is not good
.
As of the noon close, the North China market adjusted around 50 yuan / ton; East China market rose slightly by 50 yuan / ton; The South China market fell by about 50 yuan / ton
.
Warehouse receipt inventory: exchange warehouse receipts reported 2352 lots, intraday -0 lots
.

Main position: the top 20 long positions in the main contract are 164198 lots, -4164 lots, short positions are 213231 lots, -3453 lots, net positions are -49033 lots, net space increases
.

Summary: This week, the PE market has retreated
sharply.
Although the introduction of domestic stimulus policies weakened the market panic, the two barrels of oil and petrochemical inventories fell slightly, which also eased the panic in the market to a certain extent
.
However, the accelerated spread of the overseas epidemic has caused market panic, and investors are worried that raw material demand will fall sharply, resulting in a sustained sharp decline in crude oil prices, which has weakened the cost support
of LLDPE to a certain extent.
In addition, the absolute value of the two barrels of domestic oil and petrochemical inventories is still high, indicating that downstream demand has not fully recovered, which also suppresses the linear price to a certain extent, and it is expected that the future market will maintain a weak operating pattern
.