The main force of Liansu fluctuated higher, and market demand may weaken

News: On January 12, news came from the construction site of Zhejiang Petrochemical Co.
, Ltd.
's 40 million tons/year refining and chemical integration project (phase I) that the 1.
2 million tons/year styrene unit of the 1.
2 million tons/year styrene plant undertaken by China Chemical Engineering Fourth Construction Co.
, Ltd.
was successfully put into operation, and the qualified ethylbenzene product
with a purity of 99.
95% was produced.

Spot market: The domestic polyethylene market price fluctuates narrowly
.
The sales company's high-pressure price was partially raised, with a range of 50 yuan / ton, and the linear and low-pressure prices were mostly stable
.
There are not many business resources, the offer is slightly adjusted, the downstream atmosphere is general, and the real negotiation
.
As of the noon close, the North China market was stable; East China market narrow adjustment of 50 yuan / ton; The South China market is temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipts reported 2952 lots, +1040 lots
within the day.
Main position: the top 20 long positions in the main contract are 174349 lots, -4756 lots, short positions are 255248 lots, -1063 lots, net positions are -80899 lots, net short increases
.

Summary: Fundamentally, the average operating rate of polyethylene companies has fallen
from last week.
The total polyethylene production of domestic enterprises decreased
from last week.
The impact of PE equipment maintenance increased
slightly.
PE market supply is still expected to decrease
slightly this week.
The overall operating rate of agricultural film enterprises was 39.
3%, +2.
7%
week-on-week.
The operating rate of shed film enterprises was about 39.
1%, +3.
5%
month-on-month.
The operating rate of mulch film enterprises was 39.
9%, +1.
0% week-on-week, and the overall operating rate of packaging film was 71.
8%, +1.
5%
week-on-week.
At present
, packaging film enterprises are in high-load production before the holiday.
However, since the second half of this week, downstream companies have stopped work for the holiday, demand may weaken, and factory inventory has accumulated
during the Spring Festival.
Therefore, the subsequent upside may be limited, operationally, it is recommended that investors can reduce their holdings at the high and fall into their pockets
.