The upward trend of the continuous plastic contract has been hindered, and the trend is still repeated in the short term

News: The Tariff Commission of the State Council has issued an announcement: from March 2, 2020, we will no longer impose counter-tariffs
on the US 301 measures within a certain period of time for imported goods purchased from the United States by relevant enterprises that meet the conditions and purchase from the United States in accordance with the principles of marketization and commercialization.
The commodities involved mainly include PE, PP, PX, styrene, titanium dioxide, ethylbenzene, acrylonitrile, etc
.

Shenhua coal chemical linear intraday bidding volume of 750 tons; The transaction volume was 750 tons, the high-pressure auction volume was 473 tons, the transaction volume was 119 tons, and the low-pressure bidding volume was 450 tons, and the transaction volume was 355 tons
.

On February 18, the two barrels of oil and petrochemical stocks were 1.
42 million tons, down 105,000 tons from the previous day and 385,000 tons higher than last year, and the inventory digestion progress accelerated
significantly.

Spot market: The price of domestic polyethylene market is mixed
.
Supported by the continuous small rise of linear futures, the trading atmosphere of the spot market has improved, most merchants have no intention of continuing to go low, most of the offers have been raised, and only a few regional low-voltage products have made up for the decline
.
As of the noon close, the North China market adjusted 20-120 yuan / ton; East China market rose 50-100 yuan / ton; South China adjusts 50-300 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 2442 lots, intraday -0 lots
.
Main position: the top 20 long positions in the main contract are 165519 lots, -2160 lots, short positions are 227263 lots, -2018 lots, net positions are -61744 lots, net short increases
.

Summary: The introduction of domestic stimulus policies weakened market panic, and two barrels of oil and petrochemical inventories began to accelerate their decline to 1.
42 million tons, down 105,000 tons
from the previous day.
In the spot market, Shenhua Polyethylene online auction commodities rebounded rapidly the day before the transaction, indicating that downstream demand began to recover
.
As the outbreak eases, downstream demand is expected to continue to recover
this week.
However, the social inventory of polyethylene is still in the historical high area, and the downstream resumption of work progress still needs to be observed, it is expected that the trend of polyethylene will still be repeated in the short term, and the market will pay attention to the pressure
of 7,000 yuan.
Operationally, it is recommended that investors wait and see for the time being
.