Downstream demand may weaken and the price of Liansu is subdued

News: Shenhua Coal Chemical linear intraday bidding volume of 1214 tons (1150 tons in the previous day) trading volume of 150 tons (48 tons in the previous day), the transaction rate is 3.
95%; The low-pressure auction was 300 tons (400 tons on the previous day) and 10 tons (100 tons on the previous day), with a transaction rate of 3.
33%.

Xinjiang high-pressure auction 50 tons, 0 tons
.

This week, the PE inventory of domestic polyethylene enterprises (oil + coal) declined, down 6.
44%
from last week.
Among them, the total inventories of PE in two barrels of oil fell in a narrow range, down 2.
07%
from last week.
Among them, Sinopec's PE inventory decreased by 13.
83% from last week; CNPC PE inventories rose 6.
09%
from last week.
PE inventories of coal-based enterprises fell by 17.
11%
from last week.
Sample traders' PE inventories showed a higher performance, up 6.
26%
week-on-week.

This week, the operating rate of agricultural film sample enterprises declined, the current operating rate is 37.
91%, down 3.
01 percentage points from last week, the current mulch film has entered the final stage, the shed film has not yet been opened; the operating rate of pipe sample enterprises is 48%, up 2 percentage points from last week; The operating rate of packaging film sample enterprises was 62.
9%, up 1.
46 percentage points
from last week.

The reference price of European ethylene contracts in April was set at Eur720/mt, down sharply Eur200/mt
from March.
This is the lowest monthly contract reference price since June 2009 and the largest monthly decline since January 2009
.
ICIS data showed that the price of naphtha in March fell by an average of 179 euros
per tonne from February.
But supply and demand fundamentals remain weak
.

Spot market: The domestic polyethylene market price fell
.
The opening price of the sales company was partially reduced, with a range of 100-200 yuan / ton
.
Merchants are cautious, often low to find transactions, and the real market atmosphere is light
.
As of the noon close, the North China and East China markets fell 100-200 yuan / ton; The South China market fell 50-100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipt reported 180 lots, +0 lots
within the day.
Main position: the top 20 long positions in the main contract are 208700 lots, -5132 lots, short positions are 248671 lots, -17676 lots, and the net position is -39971 lots, with a decrease
in net shorting.

Summary: PE production decreased slightly last week, and polyolefin inventories in major domestic ports continued to fall, all of which provided some support
to prices.
However, the trend of crude oil is weak, and in order to rectify fake masks and unqualified production enterprises, the state emphasizes that it is necessary to strictly supervise the export quality of medical epidemic prevention materials, and seriously investigate and deal with behaviors such as raising the price of epidemic prevention products and raw materials in accordance with the law
.
Standardize and rectify the mask and meltblown cloth market, and resolutely ban small workshops
without formal production qualifications.
The market is worried that with the banning and closure of many small businesses, downstream demand may weaken, which has suppressed
prices to a certain extent.
Operationally, it is advisable
for investors to wait and see for the time being.