Market trading remains light LLDPE continues to be weak

News: With the end of September, the petrochemical overhaul season has gradually come to an end
.
In October, Shaanxi Yanchang Petroleum Yan'an Energy's low-pressure 450,000-ton low-pressure device was overhauled on August 25, and it is planned to restart around October 10, and the Shenhua Baotou full-density plant entered the overhaul on September 16 and is scheduled to restart
at the end of October.
Guangzhou Petrochemical linear plant is scheduled to be overhauled for 25 days from October 9, and there are no new overhaul plans
for other units.
In terms of the new equipment put into operation, the second phase of Ningxia Baofeng low-voltage plant was successfully tested in late September, due to the current production of the device is not continuous, the product has not been sold, the device is designed to have a HDPE capacity of 300,000 tons/year
.
Overall, domestic polyethylene supply will increase
in October.

Upstream raw materials market: Naphtha prices in Japan rebounded to $504/mt, +5.
12
.
The ethylene Asian market is quoted at $850/ton, 0, and in Southeast Asia, $800/ton, 0
.

Spot market: The LLDPE spot market continued to be weak and prices generally declined
.
North China and East China fell 50-100 yuan / ton, the mainstream price was 7500 yuan / ton, -50; the mainstream price in East China was 7600 yuan / ton, -100; South China fell 50 yuan / ton, the mainstream price was 7800 yuan / ton, 0
.

Warehouse receipt inventory: exchange warehouse receipt reported 2386 lots, intraday - 96 lots; In the historical median zone
.
Main position: The top 20 long positions in the main contract are 202141 lots, -8262 lots, short positions are 220079 lots, -7936 lots, net positions are -17938 lots, net space increases
.

Summary: In the early stage, downstream enterprises actively stocked, with the completion of stocking, procurement enthusiasm retreated, and affected by the tightening of environmental protection during the holiday, some agricultural film enterprises stopped work and limited production, the start of work fell by 9% within the week, raw material inventory accumulated, merchants have now consumed the current inventory, maintain just need to purchase
.
Affected by the poor enthusiasm of the downstream, merchant shipments were not smooth, and the PE inventory of the two barrels of oil and the inventory of traders increased
.
The spot market is still light, and merchants mainly
let profits take goods.
The main L2001 contract continued to be weak, the black line closed, and the price broke through the 60-day moving average support
downward.
In the case of bearish fundamentals, the price is expected to remain weak and volatile, pay attention to the support around 7350 below, and recommend that short orders in hand can continue to hold
.