PP opens high and goes high, and the number of single hedging is reduced

News: On September 16, 2017, Qinghai Damei Coal Industry Co.
, Ltd.
planned to invest 12.
7 billion yuan in construction, with a scale of 1.
8 million tons/year of methanol to olefins, 300,000 tons/year of polyethylene, and 400,000 tons/year of polypropylene
.
It is scheduled for completion
on December 31, 2018.
Polypropylene production capacity continues to expand, to a certain extent, reducing the external dependence of domestic polypropylene, increasing market supply, and it is expected to suppress prices in the future
.

Raw material prices: naphta CF Japan reported 582.
75 US dollars / ton, down 0.
89%; FOB Singapore was trading at $64.
19 a barrel, down 1.
09 percent
.
South Korea's FOB propylene price was $1,000 / ton, flat, and domestic propylene was 8,075 yuan / ton, up 75 yuan
.

Spot prices: Southeast Asia was flat at $1240/ton, and China's CIF price was flat at $1200/ton
.
North China CNPC T30S reported 8750 yuan / ton, up 100 yuan; East China Shaoxing Sanyuan T30S reported 8950 yuan / ton, up 50 yuan; South China Maoming T30S reported 9200 yuan / ton, flat
.

The PP1809 contract opened high and went high, and the increase in position increased significantly (in the early stage of position transfer).

Fundamentally, the high level of crude oil has fallen, and social inventories are still high or have a certain suppression of prices, but the speed of destocking has accelerated recently, and the operating rate of downstream demand enterprises has also increased, which will form a certain support
for prices.

Technically, the MACD low gold cross is to the upside, but the KDJ indicator has bounced back into the high area
.
In terms of operation, investors are mostly selling at the expense of high holdings, locking in
profits.