PP rebounded slightly Downstream demand remains relatively sluggish

News: The inventory of major domestic olefin ports continued to decline this week, with a total inventory of 231,400 tons as of November 15, down 15,000 tons from last week and 81,600 tons
from the same period last year.

Spot market: CNPC East China wire drawing film, fiber, injection molding and individual pipe materials reduced by 100 yuan / ton; Petrochemical Central China along the river wire drawing, injection molding, film material, Y40 reduced by 100 yuan / ton; Petrochemical South China wire drawing and film material part reduced by 100 yuan / ton; CNPC Northeast Fiber lowered by 100 yuan / ton, and the continuous transaction of the industry was not good, and the mentality was not good; The ex-factory price of petrochemicals was partially reduced with the contract; Traders partially let the profit out, the mainstream quotation of wire drawing fell by 50-100 yuan / ton, the downstream just needed to receive goods, and the trading atmosphere was poor
.

Warehouse receipt inventory: Exchange warehouse receipts reported 1 lot, +0 lots within the day, in the historical low area
.

Main position: the top 20 long positions in the main contract are 193556 lots, +4087 lots, short positions are 175747 lots, -767 lots, net positions are 17809 lots, net long increases
.

Summary: China and the United States are expected to cancel tariffs in stages, Asian polypropylene stops falling and stabilizes, the operating rate of downstream demand enterprises rebounds slightly, and polyolefin inventories in major domestic ports also continue to fall, forming a certain support
for prices.
But the IMF cut global economic growth to 3 percent in 2019, the lowest pace in 10 years, hitting market confidence
.
With the resumption of production of shutdown and maintenance equipment, the operating rate of PP equipment has rebounded, and since the fourth quarter, the second round of domestic environmental protection inspections has begun, and the social inventory of PP has also increased slightly, indicating that downstream demand is still relatively sluggish
.
To a certain extent, this has suppressed PP, and it is expected that PP will continue the pattern
of weak finishing and downward focus.
In terms of operation, it is recommended that investors take the opportunity to sell short positions on the rebound
.