RCEP signing short-term domestic market or limited upside

On November 15, the Regional Comprehensive Economic Partnership (RCEP) was signed

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After eight years of negotiation, the world's largest free trade zone was finally announced and officially set sail

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A total of 15 member countries signed RCEP this time, including the 10 ASEAN countries and China, Japan, South Korea, Australia, and New Zealand, with a total population of 2.27 billion, a GDP of 26 trillion US dollars, and a total export value of 5.2 trillion US dollars, all accounting for the global The total is about 30%

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The completion of the RCEP free trade zone means that about one-third of the world's economic volume will form an integrated large market

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Affected by this news, linear polyethylene rose sharply today.

As of the close, L2101, the main contract of the Dalian Commodity Exchange, opened at 7,605 yuan/ton, the intraday high touched 7,750 yuan/ton, the lowest dropped to 7,560 yuan/ton, and closed at 7,655 yuan/ton, up.140 yuan / ton, an increase of 1.86%

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Now let's compare the price changes from last Friday to today (taking East China as an example):

 

It can be seen from the above table that the price of polyethylene has risen across the board, mainly due to the impact of the signing of the Regional Comprehensive Economic Partnership (RCEP)

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After the signing of RCEP, China will sign 19 free trade agreements and 26 free trade partners.

Through RCEP, a new China-Japan free trade relationship has been established.

This is the first time China has signed a free trade agreement with the world's top ten economies.

, so that the trade coverage between China and its free trade partners will be increased from the current 27% to 35%
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The market was boosted by this news, and the mood improved.
In addition, futures went higher, petrochemical prices rose, and offers rose one after another.
However, it is still some time before RCEP finally takes effect: According to regulations, the RCEP agreement needs to be approved by at least 9 of the 15 members.
It will take effect later, which must include at least 6 ASEAN member states and at least 3 countries among China, Japan, South Korea, Australia and New Zealand, and the current global epidemic is severe, in addition, there are not many domestic equipment maintenance in China, and new production capacity has been released one after another.
, the supply pressure continues to increase
.
In the later period, despite the support of holiday consumption during Christmas and New Year's Day, the demand for agricultural film is gradually shrinking, and the oversupply may become more obvious
.
Material short-term domestic polyethylene or limited upside
.