The upward trend of the main force of Lianplastic encountered resistance to the short-term continuation of the range-bound shock pattern

News: From January to October 2019, China's plastic products exports were 11.
61 million tons, a year-on-year increase of 9.
6%.

In terms of value, China's plastic products exports from January to October 2019 were 39,069.
01 million US dollars, an increase of 11.
3%
year-on-year.
Exports of plastic products have grown steadily, showing that the rigid demand for plastics is still there
.

The first phase of Zhejiang Petrochemical's 40 million mt/year refining and chemical integration project was successfully granulated last Friday and last Sunday respectively, and is expected to be put into operation
in mid-to-late mid-to-late months.
In addition, the second phase of the project is also under intensive parallel construction at the project site, and it is expected to be delivered
by the end of next year.
PP\PE capacity continues to increase
.

Spot market: the domestic polyethylene market price is higher
.
The linear and high-pressure parts of the main regional sales companies rose slightly, with a range of 50-100 yuan / ton, and most of the low pressure was stable
.
Most of the merchants' offers moved upward, but the downstream goods were cautious, and the market real transaction atmosphere was general
.
As of the noon close, the North China market adjusted 50-100 yuan / ton; East China and South China market adjustment 50 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipt reported 1081 lots, +0 lots
within the day.
Main position: The top 20 long positions in the main contract are 160418 lots, +67019 lots, short positions are 205891 lots, +83387 lots, and the net position is -45473 lots, with a net increase
in net short.

Summary: The International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the lowest growth rate in 10 years, and the average operating rate of polyethylene enterprises this week was 93.
84%, an increase of 3.
36 percentage points
compared with the previous cycle data (90.
48%).
The total output of polyethylene of domestic enterprises was 376,600 tons, an increase of 13,500 tons
from the previous month.
Market supply has increased
.
However, after entering the end of October, the demand for plastic agricultural film gradually rebounded, and the overall operating rate of agricultural film enterprises this week was 42.
34%, +0.
07% week-on-week, showing an overall decline in demand for shed film and an increase in demand for mulch film
.
Exports of plastic products also continued to rise
.
PE social inventories continued to fluctuate and fall, and the PE inventories of domestic polyethylene enterprises (oil + coal) declined this cycle, with a week-on-week decline of 5.
4%.

Total inventories of PE in the two barrels continued to decline, falling by 6.
66%
from last week.
The PE inventory of coal enterprises fell by 1.
76%
week-on-week.
It shows that there is not much
supply pressure in the market.
This provides some support
for LLDPE.
It is expected that the short-term continuous plastic will continue the range-bound pattern
.
Operationally, investors are advised to wait and see
for the time being.