The price of the continuous plastic period fluctuates at a high level, and the pressure on the market supply side is not great

News: 1.
A full 4 months after the implementation of the "strictest plastic restriction order", Beijing has introduced new measures
to control plastic pollution.
On the previous day, the Municipal Development and Reform Commission and the Municipal Bureau of Ecology and Environment issued the "Beijing Plastic Pollution Control Action Plan 2021 Annual Work Points", setting specific tasks and indicators
for "plastic limiting".
2.
In the second quarter, the supply pressure mainly comes from the release of capacity of the new polyolefin plant (it is expected that the release of new capacity will be from the end of May to June), the centralized maintenance of domestic equipment (the maintenance of the device began to decrease in June), the supply may decrease in May, and the market participants are still relatively empty
in the market after June.
In 2021, the price of polyolefin raw materials rose sharply, and downstream factories could not transmit customer order prices, and the profits of long-term orders signed by factories even showed losses
.
Upstream enterprises have little pressure on inventory, while traders have more goods in hand, and downstream factories maintain just need to purchase
.

Market quotation: North China Daqing Petrochemical 7042 mainstream price is 8300 yuan / ton, +50 yuan
.

Warehouse receipt inventory: 1836 warehouse receipts, +0 sheets
.
Main positions: Top 20 long positions 201408, -4300, short positions reported 224705, +1677
.
Increased
headroom.

Summary: Last week, the average operating rate of domestic polyethylene enterprises continued to fall slightly, domestic production decreased, and domestic market supply decreased
accordingly.
Domestic PE social inventories fell slightly last week and are still in the historically low area, showing that there is little pressure on the supply side
.
At present, two sets of domestic plants (Haiguolong Oil and Lianyungang Petrochemical) are being tested, and it is expected that products will be put on the market in late April or May, when the supply may increase
.
The operating rate of various industries downstream of PE continued to decline slightly, the demand for agricultural film gradually ended, and the weakening of linear downstream demand is expected to suppress
the price of linearity.
Operationally, operationally, it is recommended that investors trade in the range of 8050-8230
.