PP opens low and goes high, and the position volume has increased significantly

News: In 2018, two sets of polypropylene units were tested, and their products have not yet been put on the market, and the production capacity growth rate is also the lowest level of 3%
in recent years.
However, the first phase of Hengli Petrochemical (Dalian) Refining and Chemical Co.
, Ltd.
's 450,000 tons/year polypropylene plant is scheduled to be put into operation in the second half of October, when the production capacity will continue to expand, and the annual capacity growth ratio will rise to 5%.

In 2019, coal-to-polypropylene enterprises will continue to increase and become the main force for capacity expansion, with a total capacity of 2.
55 million tons in 2019, and coal-to-polypropylene reaching 1.
45 million tons
.
The proportion of production capacity of Sinopec and PetroChina enterprises is still at a high level
.

Raw material price: naphtha CF Japan reported 629.
12 US dollars / ton, up 1.
21%; FOB Singapore was trading at $69.
13 a barrel, up 1.
10%.

South Korea's FOB propylene price was $1060 / ton, up $10, and the domestic propylene price was 8575 yuan / ton, up 25 yuan
.

Spot prices: Southeast Asia was trading at $1240, flat; The Far East was flat at $1,220 /
tonne.
Domestic: North China Qilu 9100 yuan, flat; East China Sanyuan 9300 yuan, down 30 yuan; South China Maoming 9700 yuan, flat
.

The PP1809 contract opened low and went high, and the position increased
significantly.
Fundamentals coexist long and short, during the maintenance period of the device, the sharp rise in raw materials has supported prices, but the escalation of the Sino-US trade war has produced certain pressure, technically, the MACD red column is flat, and the KDJ indicator has signs
of turning downward.
Operationally, it is recommended that investors sell high and low between 9200-9400
.