Investors should wait and see for the time being

News: The PE inventory of domestic polyethylene enterprises (oil + coal) rose this cycle, with a week-on-week increase of 8.
59%.

In terms of varieties, LDPE inventory increased by 33.
87% week-on-week; HDPE inventory rose 9.
76% week-on-week; LLDPE inventories decreased 8.
36%
week-on-week.
The total inventories of PE of the two barrels of oil rose, up 12.
07%
from last week.
Among them, Sinopec's PE inventory increased by 16.
22% from last week (there was a revision in Sinopec's PE inventory data in the previous cycle); CNPC PE inventories rose 9.
58%
from last week.
PE inventories of coal-fired enterprises fell in a narrow range, with a week-on-week decline of 0.
72%.

Among them, LDPE inventory decreased by 1.
13% week-on-week; HDPE inventory increased by 23.
30% week-on-week; LLDPE inventory decreased by 35.
03%
week-on-week.
Traders' PE inventories rose 0.
66%
week-on-week.

Affected by environmental protection production restrictions in North China, the comprehensive operating rate of agricultural film enterprises this week was only 42.
35%, down 3.
33 percentage points from last week, and the current production restrictions are nearing the end, with the slow rise of downstream demand, it is expected that the operating rate of agricultural film enterprises will increase
in the next cycle.

Spot market: The domestic polyethylene market atmosphere is weak, the center of gravity is partially shifted, and only the domestic high-pressure is slightly increased
due to a small number of goods.
The sales company's high-pressure price is partially adjusted, and the linearity and low pressure are more stable
.
The transaction atmosphere in the spot market has weakened, merchants have made profits in sales, and the center of gravity has shifted
downward.
As of the noon close, the North China market adjusted around 50 yuan / ton; The East China and South China markets are temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 1283 lots, intraday - 79 lots; In the historical median zone
.

Main position: The top 20 long positions in the main contract are 195758 lots, +2894 lots, short positions are 213730 lots, +4832 lots, net positions are -17972 lots, net short increases
.

The Sino-US trade dispute showed signs of easing, and after entering late October, downstream demand for plastics gradually recovered
.
This has some support for LLDPE, however, the International Monetary Fund lowered the global economic growth rate in 2019 to 3%, the lowest growth rate in 10 years, which hit market confidence, and the second round of environmental inspections opened, downstream enterprises were cautious in purchasing, and domestic PE social inventories rebounded
slightly.
In addition, ethylene prices in Asia also maintained their trend and continued to weaken, which is expected to suppress
LLDPE.
It is expected that Liansu may maintain a range-bound pattern
.
Operationally, it is recommended that investors wait and see for the time being
.