The market production and sales are not strong, and the upside of Liansu is limited

News: Recently, many provinces and cities in Northwest China issued a blizzard and road ice warning, a total of 12 coal enterprises in Northwest China, involving PE production capacity of 4.
79 million tons, accounting for 24.
4% of the total PE production capacity in 2019, a total of 12 coal enterprises in Northwest China, involving PE production capacity of 4.
79 million tons, accounting for 24.
4% of the total PE production capacity in 2019, Blizzard and road icing still have a certain impact on the automobile transportation of some enterprises, such as China Coal Mengda, Zhongtian Hechuang, Jiutai Energy and China Coal Yulin and Shenhua Yulin in the Yulin area, due to road ice and road closures, make it difficult to transport their automobile goods abroad, but it is not expected to have a large impact, even if it snows continuously, enterprises can choose to change to iron
.

Spot market: the polyethylene market is not well traded, and the center of gravity has shifted
downward.
The low-pressure price of the main regional sales company was partially reduced, with a range of 50-150 yuan / ton, linear and high-pressure multi-stable
.
Linear futures moved down in a narrow range, downstream more hold a wait-and-see mentality, take goods cautiously, merchants shipment intentions under the offer of the market down, as of the noon close, North China, East China market down 50 yuan / ton down; Prices in South China are temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 1291 lots, +0 lots
within the day.
Main position: The top 20 long positions in the main contract are 176109 lots, +1194 lots, short positions are 252947 lots, +6345 lots, net positions are -76838 lots, net space increased
.

Summary: The average operating rate of polyethylene enterprises last week was 92.
04%, a decrease of 1.
8%
compared with the previous week's data (93.
84%).
Demand in the Asian market is lukewarm, and participants are waiting and seeing
amid economic uncertainty.
In India, where demand is stable, production of tarpaulins in India has already begun, with the Philippines restarting its 2 polyethylene plants and 1 polypropylene plant
in Batangas at the end of December.
In the middle of the month, resources from Iran and Exxon will be concentrated in Hong Kong; The overall operating rate of downstream agricultural film enterprises was 41.
6%, -0.
7%
week-on-week.
The operating rate of shed film enterprises was about 44.
2%, and the week-on-week was -3.
2%.

Demand has slowed down, and the operating rate of mulch film enterprises is 36.
3%, +4.
6%
week-on-week.
The bidding orders for mulch film in the northwest and southwest regions were implemented, the start of enterprises increased, and the total inventory of PE of the two barrels of oil rose, up 6.
84%
from last week.
Among them, Sinopec's PE inventory increased by 14.
22% from last week; CNPC PE inventories rose 3.
54%
from last week.

In general, the first phase of Sino-US trade agreement has given a certain boost to the market, but the LLDPE market production and sales are not strong, and the total inventory of PE in the two barrels of oil has rebounded, indicating that environmental protection inspections not only have an impact on production enterprises, but may have a greater
impact on downstream demand enterprises.
In mid-December, Iranian and Exxon resources concentrated some of the cargo at the port
.
It is also expected to increase the supply pressure
in the polyethylene market.
Short-term continuous plastic upside is limited
.
In terms of operation, investors can reduce their holdings at high prices and drop their pockets for safety
.