Continuous plastic shock rebound short-term wait-and-see is appropriate

News: The PE inventory of domestic polyethylene enterprises (oil + coal) continued to decline this cycle, with a week-on-week decrease of 10.
25%.

In terms of varieties, LDPE inventory decreased by 13.
83% week-on-week; HDPE inventory decreased by 12.
38% week-on-week; LLDPE inventories decreased by 3.
15%
week-on-week.
The total inventories of PE in the two barrels of oil fell by 8.
88%
from last week.
Sinopec's PE inventory decreased by 20.
28% from last week; CNPC PE inventories fell 2.
92%
from last week.
The PE inventory of coal enterprises decreased by 15.
07%
week-on-week.
Trader PE inventories fell 4.
25%
week-on-week.

Spot market: The domestic polyethylene market fluctuated higher
.
The high-voltage part of the main area is lowered, and the linear and low-voltage are basically stable
.
Linear futures rose, merchants waited and watched, except for some loose supply resources, most of the offers rose slightly, and the real market was negotiated on demand
.
As of the noon close, the North China market was around 50 yuan / ton, and the East China market was temporarily stable; The South China market adjusted around 50 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 1231 lots, intraday -0 lots
.

Main position: the top 20 long positions in the main contract are 208001 lots, +2480 lots, short positions are 277401 lots, +183 lots, net positions are -69400 lots, and the net margin is reduced
.

Summary: Asian market demand is lukewarm, and participants are on the sidelines
amid economic uncertainty.
In India, where demand is stable, production of tarpaulins in India has already begun, with the Philippines restarting its 2 polyethylene plants and 1 polypropylene plant
in Batangas at the end of December.
The average operating rate of domestic polyethylene enterprises has rebounded
.
The overall operating rate of downstream agricultural film enterprises decreased month-on-month, indicating that downstream demand has slowed down, and the total storage volume of PE of two barrels of oil decreased slightly, with a week-on-week decrease of 4.
20%.

The Sino-US trade reached a phase one agreement, while the second exclusion list of commodities had little impact on the market situation, and the high adjustment of crude oil put pressure
on LLDPE to a certain extent.
Overall, LLDPE is currently struggling
with long and short.
In terms of operation, investors have more orders in their hands to settle on the high, and it is appropriate
to wait and see in the short term.