Liansu rebounded slightly, mainly weak adjustment in the short term

In terms of news, Oman established its first polyethylene pipe factory
to produce reinforced polyethylene pipes.
It consists of
Oman's Shanxi Hongdong Dujim Pipeline Company, Blue Ocean International Company and Daoud Alphasi Company.
It is expected to produce around 1,200 kilometers of reinforced plastic pipes per year, with the potential to double
the production capacity.
Work at the plant will take about 10-12 months to complete, and actual production may begin
in the third quarter of next year.

As of August 7, the PE inventory of domestic polyethylene enterprises rose by 9.
14%.

Among them, the total inventory of PE of two barrels of oil increased by 11.
09% month-on-month and 6.
12%
year-on-year.
Sinopec's PE inventory rose 22.
36% week-on-week; CNPC PE inventories rose 5.
11%
week-on-week.
The overall PE inventory of coal enterprises increased by 4.
32%
month-on-month.
Trader inventories fell, down 7.
49%
week-on-week.

Spot market: The domestic polyethylene market is volatile and narrow.

In terms of enterprises, the high pressure and low pressure prices in some areas of the sales company have been lowered, with a range of 50-150 yuan / ton, and the linear price fluctuation is not large
.
In terms of the market, linear futures were slightly sorted out, affected by the sharp fluctuation trend of overnight crude oil, PE market merchants had a strong wait-and-see attitude, and the offer followed up the petrochemical adjustment, and the trading atmosphere was light
.
As of the noon close, the North China market fell slightly by 20-50 yuan / ton, and the East China market adjusted by 50-100 yuan / ton; The South China market is temporarily stable
.

Warehouse receipt inventory: exchange warehouse receipt reported 1961 lots, intraday +0 lots; In the historical median zone
.
Main positions: The top 20 long positions in the main contract are 168210 lots, +4368 lots, short positions are 208036 lots, +215 lots, and net long positions are -39826 lots, +4153 lots
.

Summary: Polyolefin port inventories have fallen, and PE social inventories are at historical lows to support
prices.
However, international trade disputes continue to affect market confidence, in addition, crude oil trend weakened, ethylene price correction also weakened the cost support
of polyethylene.
The operating rate of downstream enterprises fell sharply year-on-year, manufacturers had limited enthusiasm for procurement, low willingness to stock up, and slow follow-up of actual transactions
.
Domestic social inventories have rebounded, indicating that the recent decline in stocks has been slow, and the continued low operating rate of downstream enterprises has also put a certain pressure
on prices.
It is expected that the weak adjustment will remain mainly
in the short term.
In terms of operation, it is recommended that investors can reduce their holdings in batches to buy short orders in their hands, and drop their pockets for safety
.