PP increased positions and rebounded strongly below

News: Although PP futures are slightly red today, because the futures basis is still large, the futures basis is expected to be repaired strongly, and the effect on the spot market is limited, and the spot market continues to decline
.
Traders actively let profits and shipments, mainly reduce positions, downstream factories lack confidence in the future market, low willingness to purchase, and negotiate transactions
.

Raw material price: naphtha CF Japan reported 641.
2 US dollars / ton, +0.
63%; FOB Singapore is trading at $69.
52/b, +0.
64%.

ethylene CFR Northeast Asia 930 US dollars / ton, -6.
06%; CFR Southeast Asia was trading at $845/mt, -7.
14%.

South Korea's FOB propylene price is 1055 US dollars / ton, -1.
40%, and the domestic propylene price is 9050 yuan / ton, +0.
56%.

Spot price: Southeast Asia reported $1260, +0%; The Far East was quoted at $1210/mt, -0.
82%.

Domestic: North China Qilu reported 10450 yuan, -0%; East China Sanyuan 10500 yuan, -0%; South China Maoming 10730 yuan, -0%.

PP1901 increased positions and rebounded, and both trading volume and position volume rebounded sharply, indicating that the following undertaking is strong
.
Fundamentally, the low level of social inventory, the supply pressure is not large, the price is not supported, but crude oil pullback, spot and propylene prices loosened, downstream enterprises are not active in taking goods, and the market transaction is light to suppress
the price.

Technically, the MACD shock retreated, but the red column shortened, and KDJ showed signs of a low golden cross, indicating that the bears' power weakened
.
In terms of operation, it is recommended that investors hold short orders in their hands with 10-day line profit
cautiously.