PP volatility went lower, intraday contraction and position reduction

News: The operating rate in the northwest region has risen steadily, the demand for raw materials has increased, and the operating rate of agricultural film enterprises is 35%, +2.
85%
week-on-week.
The operating rate of agricultural film enterprises in the northeast region was 46%, unchanged
from last week.
The operating rate of agricultural film enterprises in North China was 58%, down 4.
91%
from the previous month.
The peak season of the shed film market in North China is coming to an end, and the operating rate continues to decline
.

Raw material price: naphtha CF Japan reported 545.
25 US dollars / ton, +4.
15%; FOB Singapore is trading at $58.
27/b, +3.
91%.

ethylene CFR Northeast Asia 1030 US dollars / ton, +3%; CFR Southeast Asia was trading at $940/mt, +3.
30%.

South Korea's FOB propylene price is 900 US dollars / ton, -2.
17%, and the domestic propylene price is 8100 yuan / ton, -0%.

Spot price: Southeast Asia reported $1220, -0%; The Far East was quoted at $1150/mt, -0.
86%.

Domestic: North China Qilu reported 9700 yuan, -1.
02%; East China Sanyuan 9950 yuan, -0.
5%; South China Maoming 10450 yuan, -0.
95%.

PP1901 volatility lower, intraday contraction and position reduction, annual line gains and losses, indicating that the short-term trend is still weak
.
Fundamentally, crude oil is lower, propylene is weak, suppressing PP prices, and light trading in the spot market also suppresses prices, but after a continuous decline, it is expected that there will be some support
near the annual line.

Technically, MACD low flat, KDJ low hovering, and there are signs of golden cross, combined with the annual support judgment, short-term short strength has weakened
.
In terms of operation, it is recommended that investors leave the market with short orders in their hands and wait and see
for the time being.