The main contract of Liansu is volatile higher, and the short-term rally is expected to continue

News: Last week, the polyolefin inventory of major domestic ports continued to decline, and as of November 29, the polyolefin inventory of major domestic ports reported 218,400 tons, down 04,000 tons from last week and 74,600 tons
from the same period last year.

Spot market: The domestic polyethylene market is mixed
.
The main regional sales company has raised the linear price, and the low-pressure price has risen and fallen, ranging from
100-300 yuan / ton.
The attitude of merchants is wait-and-see, the linear offer part is moving up, the low-pressure price is stable and loose, the downstream continues to take goods on demand, and the market real transaction atmosphere is acceptable
.
As of the noon close, the North China market adjusted 50-100 yuan / ton; East China market is 50-100 yuan / ton higher; The South China market is temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipts reported 1181 lots, intraday +120 lots
.
Main position: The top 20 long positions in the main contract are 124520 lots, +1159 lots, short positions are 153386 lots, -1890 lots, net positions are -28866 lots, net space is reduced
.

Summary: The International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the lowest growth rate in 10 years, and the sharp decline in crude oil hit market confidence, and the average operating rate of polyethylene enterprises last week was 89.
95%, an increase of 1.
35 percentage points week-on-week, and the total weekly output was reported at 361,000 tons, an increase of 05,400 tons
.
Market supply has increased
.
However, 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 reported 42.
3% last week, continuing to rise slightly by 0.
1%
week-on-week.
At the same time, PE social inventories continued to fluctuate and fall, down 5.
21% week-on-week, while polyolefin inventories in major domestic ports also continued to fall, reporting 218,400 tons, down 04,000 tons from last week, and also lower than the same period last year
.
It shows that there is little supply pressure in the market, which has some support
for LLDPE.
The short-term rally is expected to continue
.
In terms of operation, it is recommended that investors can set a take profit in their hands and hold
them cautiously.