The main contract fluctuated lower, and the price of Liansu was suppressed

News: Recently, Japanese material development start-up TBM announced that it will build a factory in Henan Province, China, to mass-produce the material "LIMEX"
that can replace plastics.
Construction is expected to be about 10 billion yen, and construction
is scheduled to begin within 2020.
"LIMEX" is a plastic alternative material made by mixing limestone and a small amount of resin, and this material has been increasingly used in Japan for shopping bags, food packaging materials, disposable tableware, menu tables of restaurant chains, etc
.
TBM will also work with Henan Province to build product recycling infrastructure
using new materials.

The PE inventory of domestic polyethylene enterprises (oil + coal) decreased slightly this cycle, with a week-on-week decrease of 0.
15%.

Among them, the total inventories of PE of two barrels of oil edged higher, up 0.
48%
from last week.
Sinopec's PE inventory rose 7.
44% from last week; CNPC PE inventories fell 3.
94%
from last week.
PE inventories of coal-based enterprises edged lower, down 2.
08%
week-on-week.
The sample traders' PE inventories decreased by 4.
08%
week-on-week.

Spot market: The focus of the domestic polyethylene market has shifted
downward.
The low-pressure, high-pressure, and linear offer prices of the main regional sales companies were lowered, ranging from
50-100 yuan / ton.
Under the mentality of merchants fearing decline, there is a dumping behavior, and the prices of various varieties in the market have fallen
to varying degrees.
As of the noon close, the North China market fell by about 100 yuan / ton; The East China market fell by about 50 yuan / ton; The South China market is temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 921 lots, intraday - 0 lots; In historically low areas
.

Main position: The top 20 long positions in the main contract are 187210 lots, -1918 lots, short positions are 206869 lots, +633 lots, net positions are -19659 lots, net short increases
.

Summary: China and the United States are expected to cancel tariffs in phases, and after entering late October, the demand for plastic shed film is expected to gradually recover, and PE inventories fell slightly this week, which has some support for LLDPE, however, the International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the growth rate was the lowest in 10 years, which hit market confidence, and the second round of environmental protection inspections began, the operating rate of agricultural film enterprises fell, procurement was cautious, and domestic PE social inventories rebounded
slightly.
In addition, ethylene prices in Asia also remain weak, and these factors are expected to weigh on
LLDPE.
In terms of operation, it is recommended that investors reduce their holdings in the hands of short orders and put them in their pockets
.