PP opens low and goes low Investors sell short on the rebound

News: Sinochem International announced on the evening of October 15 that Sinochem, a wholly-owned subsidiary of the company, plans to invest in the establishment of a holding subsidiary SPV in Spain, with a shareholding ratio of 75.
87
%.
SPV intends to acquire a 100% stake
in Global Arlington and its subsidiary ELIX Polyemrs for EUR 144 million.
ELIX Polymers is mainly engaged in engineering plastic products
.
This move is expected to continue to expand overseas markets and adjust the supply and demand of domestic plastic products
.

Raw material price: naphtha CF Japan reported 689.
12 US dollars / ton, +0.
11%; FOB Singapore is trading at $74.
82/b, +0.
09%.

ethylene CFR Northeast Asia 1120 US dollars / ton, +0%; CFR Southeast Asia is trading at $1,020/mt, +0%.

South Korea's FOB propylene price is 1150 US dollars / ton, +0%, and the domestic propylene price is 10075 yuan / ton, -0.
98%.

Spot price: Southeast Asia quoted $1250, +0%; The Far East reported $1250 / ton, +0%.

Domestic: North China Qilu reported 11200 yuan, +0%; East China Sanyuan 11050 yuan, -0.
45%; South China Maoming 11200 yuan, -0.
88%.

PP1901 opened low and went low, intraday trading was sharply higher, and the position was also greatly reduced, indicating that some long funds left the market
profitably.
Fundamentally, spot inventories continue to be low, and firm spot prices form a certain support for futures prices, but downstream enterprises compress profits, take goods inactively, and light market transactions suppress prices
.

Technically, MACD has signs of a high dead cross, the red bar continues to shorten, and the KDJ indicator has a high turn downward, indicating the requirement
of short-term adjustment.
Operationally, investors are advised to sell short
on the rebound.