PP position reduction and volume reduction maintain weak volatility in the short term

Raw material prices: Japan naphtha CF Japan reported 510.
25 yuan / ton, up 2.
75; naphtha FOB Singapore reported 55.
45 US dollars / barrel, up 0.
3
.
ethylene CFR Northeast Asia 1375 US dollars / ton, flat; CFR Southeast Asia was flat at $1145/mt
.
The CIF price of propylene in China was 995 US dollars / ton, down 10
.

Spot prices: Foreign spot market prices rose, the Far East was quoted at $1045 / ton, up 20, and China's CIF price was 1045 US dollars / ton, up 20
.
The domestic market price fell, North China Qilu Petrochemical 8800 yuan / ton; East China Ningbo 8550 yuan / ton, down 100; South China Maoming reported 8800 yuan / ton, flat
.

News side: 1.
The old plant of Zhenhai Refining PP granules (200,000 tons/year) was converted to Z30S, and the new plant (300,000 tons/year) produced T03
.

Short-term downstream starts have rebounded, but raw material prices have fallen, the market is not highly motivated to take goods, mostly to digest the previous inventory, this week social inventory continued to increase, but the increase has slowed down, and near the end of the month, traders completed orders to take goods, the price slightly supported, but the overall social inventory pressure is large, not overly optimistic, the future market focuses on demand and inventory digestion capacity, short-term is expected to maintain low volatility
。 Technically, the PP1705 contract fluctuated down, short-term lower test of support around 8300, upper test of pressure around 8800, is expected to maintain a weak shock in the short term, it is recommended to rely on the 8800 line of light short positions
.