PP opened slightly lower and rebounded slightly at midday

MetCap Energy Investment announced plans to develop a PE and PP plant
in Turkey with Fusion Dynamics in Turkey.
It plans to invest US$4 billion to convert 2.
1 billion cubic meters of natural gas into 2.
6 billion cubic meters of methanol per year, which in turn will be converted into 1 million tons of light olefins per year, and then 400,000 tons of PE and 590,000 tons of PP.

In addition, Saudi Aramco and France's Total will also build a "giant petrochemical complex" in Saudi Arabia
.
The US$5 billion (€4 billion) investment includes a "world-scale" mixed-feedstock steam cracker plant with an annual capacity of 1.
5 million tonnes of ethylene and related high value-added petrochemicals
.
It is expected to begin
in the third quarter of 2018.
The cracker will supply feedstock
for other petrochemical and specialty chemical plants.

Raw material prices: naphtha CF Japan reported 608.
25 US dollars / ton, up 1.
08%; FOB Singapore was trading at $66.
92 a barrel, up 1.
12%.

South Korea's FOB propylene price was 1030 US dollars / ton, flat, and domestic propylene 8175 yuan / ton, flat
.

Spot prices: Southeast Asia was flat at $1235/ton, and China's CIF price was flat at $1200/ton
.
North China CNPC T30S reported 8750 yuan / ton, unchanged; East China Shaoxing Sanyuan T30S reported 9,000 yuan / ton, down 100 yuan; South China Maoming T30S reported 9200, down 50 yuan
.

The PP1809 contract opened slightly lower and rebounded slightly at midday, but not strongly, and continued to fall in the afternoon, indicating that short-term upward pressure is still large
.
Fundamentally, social inventories are still high or suppress prices to a certain extent, but crude oil is firm, and the speed of downstream destocking has accelerated in the near future, which is expected to form some support
for prices.

Technically, the PP1809 contract is under pressure and supported downward, the MACD indicator red column is shortened, the KDJ indicator enters the high area after the turning phenomenon, beware of short-term technical adjustments
.
Operationally, it is advisable
for investors to wait and see.