PP rushed back down and the position volume decreased significantly

News side: Affected by the continuous high temperature and high humidity weather, the electricity load in Shandong Province continues to rise
.
Recently, the State Grid Shandong Electric Power Company launched the first orderly electricity consumption measures this summer to ensure the balance
of supply and demand in Shandong Power Grid.
On the afternoon of the 2nd, a number of PP powder companies, including Luqing and Dongfang Hongye, have successively received industrial power rationing notices, and the industrial power rationing time is expected to be 4-5 days
.
The daily supply of powder in Shandong is 700-800 tons, which supports the market trend
to a certain extent.

Raw material price: naphtha CF Japan reported 654.
75 US dollars / ton, down 1.
45%; FOB Singapore was trading at $72.
46 a barrel, down 0.
51 percent
.
South Korea's FOB propylene price was 1070 US dollars / ton, flat, and the domestic propylene price was 8950 yuan / ton, up 50 yuan
.

Spot price: Southeast Asia was quoted at $1220, flat; The Far East was flat at $1,200 / ton
.
Domestic: North China Qilu no quotation; East China Sanyuan 9900 yuan, up 200 yuan; South China Maoming no quote.

The PP1809 contract fell back up, and the position volume decreased significantly (the main contract is moving forward to the 1901 contract).

Fundamentally, the obvious decline in social inventory, power rationing in Shandong Power Grid, and strong spot prices supported prices, but after continuous rise, there was a certain profit selling pressure
in the short term.

There is also a divergence in the technical picture, with the MACD continuing to fluctuate higher, but the KDJ indicator continues to diverge, and it needs to guard against technical adjustments
in the short term.
In terms of operation, it is recommended that investors can reduce their holdings in batches when they rise sharply, and drop their pockets for safety
.