The short-term trend is still weak

News: The overall operating rate of agricultural film enterprises last week was -3.
3%
week-on-week.
This week, agricultural film starts in North China fell significantly, with the operating rate -7.
0%
week-on-week.
Mainly in some parts of North China, environmental protection production is limited, and the impact of construction is great
.
Agricultural film starts in East China decreased slightly, with the operating rate -3.
8%
week-on-week.
The start of agricultural film in the northwest and southwest regions increased, and the operating rate in other regions did not change much
.

Last week, the raw material inventory of plastic knitting enterprises above designated size was about 10-15 days, and the average level of small enterprises was 8-10 days
.

Spot market: The domestic polyethylene market atmosphere is weak, and most of the center of gravity has shifted
downward.
The high-pressure and low-pressure listing prices of the main regional sales companies were partially reduced, and the linear adjustment was not large
.
Linear futures are weak and volatile, merchants are not shipping smoothly, most of the offers are moving down, some are inverted, downstream wait-and-see is the mainstay, and the real trading atmosphere is not good
.
As of the noon close, the North China market was 30-100 yuan / ton lower; East China market down 50-150 yuan / ton; The South China market is temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 1118 lots, intraday -130 lots; In the historical median zone
.
Main position: the top 20 long positions in the main contract are 199175 lots, -11639 lots, short positions are 199175 lots, -12961 lots, net positions are -13318 lots, net space is reduced
.

Summary: China and the United States are expected to cancel tariffs in phases, and after entering late October, downstream demand for plastics will gradually recover
.
This has some support for LLDPE, however, the International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the lowest growth rate in 10 years, which hit market confidence, and the second round of environmental inspections opened, downstream enterprises were cautious in purchasing, and domestic PE social inventories rebounded
slightly.
In addition, ethylene prices in Asia also remain weak, and these factors are expected to weigh on
LLDPE.
The short-term trend of Liansu is still weak
.
In operation, it is recommended that investors hold short orders or set take profit in their hands and hold
them cautiously.