The main contract of Liansu fluctuated lower, and downstream demand gradually recovered

News: Guangzhou Petrochemical PE full-density unit first-line/second-line parking, scheduled to start on
November 5.
Lanzhou Petrochemical's 200,000-ton high-pressure plant produced 2426H, and the 60,000-ton old full-density plant was shut down on May 17, 2013 due to insufficient raw material supply and has not been restarted
.
The 300,000-ton full-density unit stopped on the 29th, and it is planned to stop for 4 days, and the production of 6095H
is planned after start-up.
The old line of 170,000 tons of low-voltage equipment produces 5000S, and the new line is converted to 5000S
.

Spot market: The domestic polyethylene market is mixed
.
In terms of petrochemicals, the sales company's linear and low-pressure opening unit price was partially reduced, with a range of 50-100 yuan / ton
.
Linear futures edged higher, merchants waited and see, offers adjusted in a narrow range, and the center of gravity of real orders was mixed
.
As of the noon close, the North China market was narrowly adjusted around 50 yuan / ton; East China market adjustment 50-100 yuan / ton; The low-pressure part of the South China market dropped by 100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipt reported 1362 lots, intraday - 200 lots; In the historical median zone
.
Main position: The top 20 long positions in the main contract are 1956128 lots, -376 lots, short positions are 203757 lots, +2137 lots, net positions are -8145 lots, net short increases
.

Summary: The Sino-US trade dispute is showing signs of easing, and after entering late October, the downstream demand for plastics has gradually recovered
.
This has some support for LLDPE, however, 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, and the second round of environmental inspections opened, downstream enterprises were cautious in purchasing, and domestic PE social inventories rebounded
slightly.
In addition, the weakening trend of crude oil and the continuation of the weakening of ethylene prices in Asia are expected to suppress LLDPE
.
It is expected that Liansu may maintain a range-bound pattern
.
Operationally, investors set short orders in their hands to take profit and hold
them cautiously.