Even plastic shrinkage to reduce positions and the futures price is sorted out at a high level

News: 1.
Liaoning Bora Petrochemical has officially produced qualified product 7042, with a linear production capacity of 450,000 tons/year and a low-pressure production capacity of 300,000 tons/year
.
Sinochem Quanzhou's 400,000-ton HDPE plant has been successfully commissioned, and it is planned to produce qualified products
in early September.
Yantai Wanhua's 350,000-ton low-pressure and 450,000-ton linear units are scheduled to start up
in late September.
The 350,000-ton low-pressure project of China-Science Cooperation Zhanjiang is scheduled to be put into operation
in September.
The commissioning of the cracker of Sinochem Quanzhou Refining and Chemical Integration Project (Phase II) has been postponed to September 15, and the downstream polyolefin plant will be put into operation after the cracker is put into operation
.
It is expected that in mid-to-late September, the supply of domestic polyolefins will increase
significantly.
2.
At the end of August 2020, Longzhong Information conducted a survey on the upper, middle, downstream and warehousing enterprises in Shandong plastics industry, and the results showed that the recent plastic storage level of warehousing enterprises was basically the same, and the warehouse PE inventory was moderately low
.
Most of the downstream product enterprises have stocks in the early stage, and the current raw material inventory is at the upper middle level, and the raw material inventory use cycle of several product enterprises surveyed is at least two months, and the purchase tends to be cautious
after the price rises.
Most downstream companies believe that the order situation in September and October is expected to improve, the demand for raw materials will increase, and the PE market in the future market is prone to rise and fall, and the overall trend is still good
.

Market quotation: North China Daqing Petrochemical 7042 mainstream price is 7500 yuan / ton, +0 yuan
.

Warehouse receipt inventory: 1223 warehouse receipts, -81 receipts
.
Main positions: Top 20 long positions 188676, -5549, short positions 204131, -1237
.
Increased
headroom.

Summary: In September, PE has new equipment and production plans, and the number of equipment for later maintenance is gradually reduced, and it is expected that the market supply will increase
significantly in the later stage.
However, crude oil maintained a high volatility pattern, and the cost support of continuous plastic is still there
.
The operating rate of downstream agricultural film enterprises has rebounded, and the recent polyolefin inventory in major domestic ports has remained in the historical low area, and the two barrels of oil and petrochemical inventory are also in the low area of the past few years, indicating that the short-term supply pressure is not large.