Continuous plastic contracts reduce their positions and futures prices fluctuate in a narrow range

News: 1.
Lianyungang Petrochemical's 1.
25 million tons/year ethylene cracking plant cracking furnace has been officially ignited successfully on January 15, and the first phase of HDPE plant is scheduled to be officially put into operation in March, the HDPE production capacity of the unit is 400,000 tons/year, located in Lianyungang
, Jiangsu.
2.
Longzhong Information reported on February 2: 550,000 tons of oil depots in the two oil depots (615,000 tons of morning depots were revised yesterday), down 65,000 tons
from yesterday.

Market quotation: North China Daqing Petrochemical 7042 mainstream price is 8050 yuan / ton, +0 yuan
.
Warehouse receipt inventory: 923 warehouse receipts, -0 receipts
.

Main positions: Top 20 long positions 178807, -2276; short positions reported 225123, +1299
.
Increased
headroom.

Summary: In February, PE maintenance equipment remained low, the weekly average operating rate of polyethylene rebounded, and the overall market supply rebounded
.
Last week, the operating rate of downstream products fell, indicating that downstream demand may be reduced
as the Spring Festival approaches.
However, the Spring Festival long holiday is approaching, or many companies need to prepare materials, and the petrochemical inventory of two barrels of oil continues to maintain a low level also supports the price, the current fundamentals are long and short intertwined, it is expected to maintain a range shock pattern in the short term, operationally, it is recommended that investors operate in the 7700-8000 range
.