The rise of the continuous plastic shock shows that the short-term multi-party force has weakened

News: ICIS data shows that about 4.
6 million tons of new PE capacity is planned to be put into operation in 2019, increasing global PE production capacity by 3.
8%; The planned new PE capacity includes four new shale gas-based PE projects in the U.
S.
, as well as large-scale PE projects
in India, Malaysia, Indonesia and Russia.
In the next five years, there are about 159 factories planned and announced for construction, mainly in Asia, North America and the Middle East, and global polyethylene production capacity is expected to increase significantly, from 110.
12 million tons/year in 2018 to 157.
02 million tons/year in 2023, an increase of 43%.

The large number of new production capacity will lead to oversupply in the global PE market, which will be negative for PE.

Spot market: The domestic polyethylene market shows a slight fluctuation trend
.
In terms of enterprises, petrochemical inventories are low, and the opening price of most varieties of major regional sales companies continues to rise, with a range of 50-100 yuan / ton
.
In terms of the market, the trend of linear futures is volatile, the trading atmosphere of the spot market is general, some tight resource offers continue to rise, and the rest of the real center of gravity has loosened performance
.
As of the morning close, the volatility in North China was 20-100 yuan / ton; The volatility in East China is about 50 yuan / ton; South China was partly 50-100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipt reported 1518 lots, +0 lots within the day; In the historical median zone
.
Main positions: The top 20 long positions in the main contract are 185902 lots, -7746 lots, short positions are 248796 lots, +4119 lots, and net long positions are -62894 lots, -11865 lots
.

Summary: The tense situation between the United States and Iran, the peak of equipment maintenance, and the decline in social inventory supported the price of LLDPE
.
Technically, the current L1909 contract is rushing higher and falling, but the bullish trend is barely preserved
.
The indicator MACD rose slightly, but the red bar contracted, and the KDJ indicator also showed signs of a high retreat, indicating that the short-term bullish strength has weakened
.
In terms of operation, investors can reduce their holdings at high prices and drop their pockets for safety
.