PP high finishing intraday drawdown and position reduction

News: On October 5, LyondellBasel announced that Zhejiang Petrochemical Co.
, Ltd.
(ZPCC) has selected LyondellBasel's world-leading polypropylene (PP), high-density polyethylene (HDPE) and low-density polyethylene (LDPE) technologies
for its five new plants.
The complex will include two PP plants of 450,000 tons/year, two LDPE plants of 300,000 tons/year and 400,000 tons/year, and an HDPE plant
of 350,000 tons/year.
The total capacity of these new permits is close to 2 million tons
.

Raw material price: naphtha CF Japan reported 722.
75 US dollars / ton, +1.
07%; FOB Singapore is trading at $78.
63/b, +0.
90%.

ethylene CFR Northeast Asia 1160 US dollars / ton, -1.
69%; CFR Southeast Asia is trading at $1060/mt, -1.
85%.

South Korea's FOB propylene price is 1135 US dollars / ton, +0%, and the domestic propylene price is 10125 yuan / ton, +0.
85%.

Spot prices: Southeast Asia was trading at $1240, flat; The Far East was flat at $1,245/mt
.
Domestic: North China Qilu reported 11,000 yuan, flat; East China Sanyuan 11250 yuan, up 200 yuan; South China Maoming 11,650 yuan, up 400 yuan
.

PP1901 was sorted out at a high level, and the intraday contraction and position reduction showed that some funds took profits
.
Fundamentally, the management's tax cuts and RRR cuts have boosted the market to a certain extent, and the sharp rise in spot prices has formed a strong support
for futures prices.

Technically, the MACD and KDJ indicators continue to rise steadily, indicating that bulls still have the initiative
.
In terms of operation, it is recommended that investors set more take profits in their hands and hold
them cautiously.