The magnitude of the rebound remains to be seen

News: In October, China's PE output was about 1.
5152 million tons, up 105,000 tons, or 7.
45%, from the same period last month, up 98,200 tons, or 6.
93%.

From January to October this year, the total domestic PE output was 14.
5126 million tons, an increase of 1.
985 million tons or 15.
85%
over the same period last year.

Spot market: the domestic polyethylene market price adjustment, the main regional sales company linear part upward, low pressure part down, the range of 50-100 yuan / ton
.
Linear futures fluctuated slightly, merchants waited and watched, offers were adjusted according to resource supply, downstream maintenance just needed procurement, real negotiation transactions
.
As of noon, the North China and East China markets adjusted 50-100 yuan / ton; The South China market was 50 yuan / ton
higher.

Warehouse receipt inventory: exchange warehouse receipt reported 1061 lots, intraday - 100 lots; It is in the low-to-middle historical zone
.
Main position: The top 20 long positions in the main contract are 125214 lots, -5206 lots, short positions are 154900 lots, -3208 lots, net positions are -29686 lots, net space increases
.

Summary: The International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the lowest growth rate in 10 years, which hit market confidence, but crude oil rebounded strongly, China and the United States are expected to cancel tariffs in phases, and after entering late October, the demand for plastic agricultural film gradually rebounded, and the overall operating rate of agricultural film enterprises last week was +2.
6%
week-on-week.
At the same time, PE social inventories continued to fluctuate and fall, down 4.
09% month-on-month, while polyolefin inventories in major domestic ports also continued to fall, reporting 222,400 tons, down 09,000 tons from last week, and also lower than the same period last year
.
At the same time, it is also lower than the same period last year, indicating that there is little supply pressure in the market, which has some support
for LLDPE.
However, the extent of the rebound remains to be seen
due to the increase in new production capacity.
In terms of operation, it is recommended that investors can hold long positions with caution
.