The short-term trend is still weak

News: Polyolefin inventories in major domestic ports continued to decline, and as of October 18, the total inventory was reported at 273,400 tons, down 09,000 tons from last week and 90,600 tons
from the same period last year.

Spot market: The center of gravity of the domestic polyethylene market has shifted
downward.
In terms of petrochemicals, the opening price of sales companies is mostly stable, and the cost support is temporarily stable
.
Linear futures fluctuated and fell, merchants did not ship smoothly, the offer fell slightly, and the transaction was flat
.
As of the noon close, the market prices in North China, East China and South China fell by 50-100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipt reported 1761 lots, intraday -160 lots; In the historical median zone
.

Main position: The top 20 long positions in the main contract are 206098 lots, +3198 lots, short positions are 208169 lots, +4186 lots, and the net position is -2071 lots, with a net increase
in shorting.

Summary: After entering late October, the downstream demand for plastics gradually recovered
.
This has some support for LLDPE, but the IMF cut 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 companies were cautious in purchasing, traders did not ship smoothly, and inventories rose
.
In addition, ethylene trends in Asia continue to weaken, and these factors are expected to suppress
LLDPE.
The future market pays attention to whether the low line in the early stage can form an effective support
.
Operationally, investors can hold short orders cautiously
.