PP broke to the downside and closed at a new low

News side: some petrochemical factory prices continue to reduce PP spot prices, Sinopec South China reduced 50-150 yuan / ton, CNPC South China lowered 100-600 yuan / ton, cost support continued to weaken, today's "two barrels of oil" inventory slightly lowered, still maintained above 800,000 825,000 tons, market supply pressure is large, merchant quotations continue to fall, pessimistic atmosphere continues, the overall price in the market is more chaotic, demand is wait-and-see, market inquiries are limited
.

Raw material price: naphtha CF Japan reported 546.
12 US dollars / ton, +0.
16%; FOB Singapore is trading at $58.
49/b, +0.
38%.

ethylene CFR Northeast Asia 1040 USD/ton, +0.
97%; CFR Southeast Asia is trading at $950/mt, +1.
06%.

South Korea's FOB propylene price is 900 US dollars / ton, -0%, and the domestic propylene price is 8335 yuan / ton, +0.
73%.

Spot price: Southeast Asia reported $1220, -0%; The Far East was quoted at $1150/mt, -0%.

Domestic: North China Qilu reported 9700 yuan, -0%; East China Sanyuan 9950 yuan, -0%; South China Maoming 10400 yuan, -0.
48%.

Summary of views: PP1901 broke downward, closed at a new low, and positions were significantly reduced, indicating that the market was sluggish
.
Fundamentally, crude oil is lower, propylene is weak, which suppresses PP prices, loose spot market prices, and light transactions also suppress
prices.

Technically, the MACD volatility is lower, and the KDJ is also hovering low, indicating that the short-term trend is still weak
.
Operationally, it is recommended that investors mainly sell short on the rebound
.