PE market prices fell and merchants' shipments were blocked

Upstream: The overall downward trend of international oil prices this week has failed to stabilize and the market is expected to reverse and recover
.
The news of the increase in crude oil production in Russia and Saudi Arabia and the market's skepticism about production cuts prevailed, and pessimism in the oil market revived, while bears began to smash the market, which became the trigger and booster for the sharp drop in oil prices
.
It is expected that the international oil market will continue its downward trend
next week.

On Monday, WTI crude oil January 2019 futures settled at $49.
88 per barrel, trading in a range of $49.
06-51.
87, and Brent crude oil February 2019 futures settled at $59.
61 per barrel, trading in a range of $58.
79-61.
21
。 On Friday (December 21), WTI crude oil February 2019 futures settled at $45.
59 per barrel, the lowest since July 12, 2017, trading in a range of $45.
13-46.
77, and Brent crude oil February 2019 futures settled at $53.
82 per barrel, trading in a range of $52.
79-$55.
33
.

Manufacturer dynamics: the total inventory of the mainstream petrochemical region has increased, although the futures price volatility slightly higher, but the market trading atmosphere is empty, the petrochemical plant is partially pulled, but the downstream demand is gradually weakened, the enthusiasm for raw material procurement is not high, and more insist on just needing to replenish the warehouse, resulting in slow shipments of merchants
.
In addition, the maintenance of some domestic petrochemical plants was slightly adjusted this week, and the overall inventory increased
month-on-month.
Inventories are expected to continue their choppy trend
next week.

Futures trend: On Friday, December 21, the main contract of polyethylene futures L1905 opened at 8595, the highest price was 8630, the lowest price was 8545, the closing price was 8605, the previous settlement price was 8635, the settlement price was 8580, down 30, or 0.
35%, the trading volume was 229704, the position was 504124, and the daily increase was 5778
.
(Quotation: yuan/ton)

This week's futures overall early week volatility slightly higher, but to the market favorable support is limited, weekend futures prices fluctuated down, downstream demand is light, resulting in slow shipments of merchants, terminal timely replenishment sentiment is general, mostly just demand-based
.
It is expected that the market will be dominated by a narrow range next week
.

Downstream: Downstream factories are basically operating normally this week, but orders are less than the beginning of the year, and the enthusiasm for starting work at the end of the year is limited, and merchant shipments are hindered
due to the end of the replenishment of downstream factories at the beginning of the month.
As a result
, the downstream market remains based on demand-based buy-as-you-go.
The situation is expected to remain weak next
week.

Looking forward to the future market, the inventory of manufacturers and enterprises this week fluctuated and increased, although some petrochemicals lowered their factory prices, the market atmosphere was empty, and traders were under pressure
to ship.
The maintenance situation of domestic equipment has not changed much, while the pressure of imported source inventory has increased, and the terminal factory has insufficient orders at the end of the year, and it is just necessary to replenish the warehouse
.
The operating rate of downstream factories has fallen, and it is difficult to have major changes in demand in other industries
.
In the short term, the overall supply of goods in the market is relatively sufficient
.
It is expected that the PE linear spot market will continue to fluctuate in a narrow range next week, and merchants should remain cautious
.