Lianplastic high opening oscillation, downstream demand gradually rebounded

News: Longzhong October 22 ethylene: CFR Northeast Asia 680 US dollars / ton fell 30, CFR Southeast Asia 770 US dollars / ton stable
.
The overall price of film enterprises remained stable, and individual manufacturers adjusted slightly by 50-100 yuan / ton, and the actual transaction situation has not improved
.

The price of agricultural film in South China is stable, the demand is gradually followed, and the production of large factories is better, with a daily output of about 90 tons and 90%
of the operation.
Other enterprises are 30-50 tons, and the operating rate varies
from 3-6.
Reference price: white film 8400-8600 yuan / ton, double anti-film 9500-10000 yuan / ton, individual large factories report about
10300 yuan / ton.
No tax, transaction volume negotiation
.

Spot market: The domestic polyethylene market is mixed, and the transaction atmosphere is light
.
In terms of petrochemicals, the sales company's low-pressure price was partially reduced, and the linear stability was medium and small increase
.
Supported by the news of easing international trade frictions, linear futures rebounded, and spot merchants offered some upwards, but North China lacked enthusiasm for downstream goods due to environmental protection and production restrictions, and the real transaction atmosphere was general
.
As of the noon close, the prices in the North China, East China and South China markets were narrow, with a range of 50-100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 1671 lots, intraday - 90 lots; In the historical median zone
.
Main position: The top 20 long positions in the main contract are 208619 lots, -7027 lots, short positions are 211500 lots, -3640 lots, net positions are -2881 lots, net long turn net short
.

Summary: The Sino-US trade dispute is showing signs of easing, and after entering late October, the downstream demand for plastics has gradually recovered
.
This has some support for LLDPE, but the IMF cut 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 companies were cautious in purchasing, traders did not ship smoothly, and inventories rose
.
In addition, ethylene trends in Asia continue to weaken, and these factors are expected to suppress
LLDPE.
The future market will pay attention to whether the pressure on the 7350 line can be broken
.
Operationally, investors can hold short orders cautiously
.