Liansu opened high and went low, and the position volume shrank slightly

News: LyondellBassel CEO Bob Patel recently predicted that the global polyethylene (PE) market will remain tight
this year and next.
Overall global PE supply and demand growth will be close to balance in 2019, while HDPE demand growth will once again outpace supply growth
.
"If capacity utilization falls by 1% by the end of the year, in my opinion, we are still in a very tight market
.
Not much capacity will be put into operation
in the next few years.

Raw material price: naphtha CF Japan reported 637 US dollars / ton, up 0.
39%; FOB Singapore was trading at $69.
54 a barrel, up 0.
32%.

ethylene CFR Northeast Asia 1400 US dollars / ton, flat; CFR Southeast Asia was flat at $1260/mt
.

Spot price: Southeast Asia was flat at $1115; Far East reported 1120 yuan / ton, unchanged
.
Domestic price: North China Daqing reported 9700 yuan, flat; East China Yuyao reported 9800 yuan, flat; Guangzhou in South China 9600 yuan, down 50 yuan; Northwest Dushanzi 9800 yuan, flat
.

The Liansu 1901 contract opened higher and went low, and the position shrank
slightly.
Fundamentally, the slight decline in social inventories has formed a certain support for the futures price, but the loosening of spot prices has suppressed it to a certain extent
.
And the continuous rise in the early period, there is a certain pullback pressure
in the short term.

Technically, the MACD indicator has a dead cross at a high level, the red bar turns green, and the KDJ indicator turns downward and shows signs of divergence downward, indicating that there are still requirements
for correction in the short term.
Operationally, investors are advised to hold
short orders with caution.