Liansu rebounded slightly, and long positions were held cautiously

News: The Yeocheon Naphtha Cracking Center (YNCC) in South Korea plans to invest 740 billion won (US$666 million) to expand the capacity of the Yeosu steam cracker to increase ethylene and butadiene production capacity and meet customer demand for key olefin products
.
YNCC plans to increase ethylene production capacity by 335,000 tons/year by 2020, and after the completion of the project, YNCC's total ethylene production capacity will increase to 2.
29 million tons/year, and the total butadiene production capacity will increase from the current 240,000 tons/year to 370,000 tons/year
.

Raw material price: naphtha CF Japan reported 666.
88 US dollars / ton, down 0.
82%; FOB Singapore was trading at $72.
59 a barrel, down 0.
83%.

ethylene CFR Northeast Asia 1320 US dollars / ton, down 10 US dollars; CFR Southeast Asia was trading at $1215 a tonne, down $
10.

Spot prices: Southeast Asia was flat at $1,130; Far East reported 1090 yuan / ton, down $
5.
Domestic prices: North China Daqing reported 9550 yuan, up 50 yuan; East China Yuyao reported 9,500 yuan, flat; Guangzhou in South China 9650 yuan, down 50 yuan; Northwest Dushanzi 9600 yuan, flat
.

The Liansu 1901 contract rebounded slightly, and the position was reduced, indicating that a small amount of short funds
exited.
Fundamentally, Asian ethylene prices fell and social inventories rebounded slightly, putting some pressure on futures prices, but spot prices were stable, and petrochemical prices supported them
.

Technically, the MACD indicator oscillated and retreated, but the green column gradually shortened, and the KDJ indicator low golden cross upward, and it is expected that there will be a rebound requirement
in the short term.
In terms of operation, it is recommended that investors set more take profits in their hands and hold
them cautiously.