The short-term trend is still weak

News: The overall operating rate of agricultural film enterprises this week was around 41.
7%, -3.
3%
week-on-week.
The operating rate of shed film enterprises this week was around 50.
3%, -6.
1%
week-on-week.
The demand for shed film has slowed down, and at the same time, environmental protection production restrictions and production in some parts of North China have a large impact on the start of construction, and the operating rate of shed film enterprises generally ranges from
3-8%.
The operating rate of mulch film enterprises this week was 24.
2%, +2.
5%
week-on-week.
The bidding orders of individual enterprises in the northwest and southwest regions increased, and the start of construction increased, while the orders of other mulch film enterprises were scarce and the work was mainly stopped
.

Since May, Fujian United Petrochemical Ethylene Plant has maintained a stable rate of more than
98.
77% for three consecutive months.
As of October 31, ethylene production exceeded the 1 million ton mark, and the yield of high-value products was 61.
73%, reaching a new high
in the same period of history.
Ethylene production rose steadily, indicating that
the market was well supplied.

Spot market: The domestic polyethylene market fluctuated
in a narrow range.
The low-pressure opening price of the main regional sales company was partially reduced, and most of the rest were stable
.
The trend of linear futures is volatile, the merchant attitude is cautious, the offer is accompanied by adjustment, and the actual order transaction is light
.
As of the noon close, the North China market adjusted around 50 yuan / ton; The East China and South China markets are temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 1248 lots, intraday - 35 lots; In the historical median zone
.

Main position: The top 20 long positions in the main contract are 197496 lots, +1738 lots, short positions are 212136 lots, -1594 lots, net positions are -14640 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 maintained their trend and continued to weaken, which is expected to suppress
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.