LLDPE demand remains weak Supply and demand issues still weigh on prices

News: 1.
With the increasing market demand for agricultural film, packaging film and some daily products in summer, the sales of low-density polyethylene products of Maoming Petrochemical Chemical have followed a good
road.
In July, the company's high-pressure polyethylene resin products produced and stored 28,200 tons, an increase of 7,791 tons year-on-year, an increase of 38.
28%; The sales volume was 28,100 tons, an increase of 7,808 tons year-on-year, an increase of 38.
45%, and the production and sales volume once again achieved a double breakthrough, hitting a new high
in the same period of history.
2.
The ethylene plant, a comprehensive utilization project of 1.
1 million tons/young hydrocarbons of Xinpu olefin, exclusively undertaken by Shijian Company of Refining and Chemical Engineering Group, was successfully started at 15 pm on August 19, 2019, and produced polymer-grade ethylene products
with a purity of 99.
98%.

Upstream raw materials market: The price of naphtha in Japan continued to rise, at $468.
50/ton, +1%.

The price of ethylene in the Asian market stabilized, of which the quotation in Northeast Asia was 930 US dollars / ton, 0; in Southeast Asia, it was 840 US dollars / ton, 0
.

Spot market: The LLDPE spot market was mixed during the day
.
The price in North China market is adjusted by 20-50 yuan / ton, the mainstream price is 7480 yuan / ton, 0; the East China market is reduced by 50-150 yuan / ton, the mainstream quotation is 7500 yuan / ton, -50; the South China market is adjusted by 50 yuan / ton, the mainstream price is 7600 yuan / ton, 0
.

Warehouse receipt inventory: exchange warehouse receipt reported 2006 lots, intraday - 60 lots; In the historical median zone
.
Main position: The top 20 long positions in the main contract are 211904 lots, +12462 lots, short positions are 258627 lots, +6635 lots, and net positions are -46723 lots, net short increases
.

Summary: Affected by the larger-than-expected decline in API inventories, international oil prices rose slightly, naphtha prices continued to rise, ethylene prices stabilized, and upstream cost support strengthened
.
During the week, Shenhua Xinjiang, China Coal Yulin and other equipment were stopped for maintenance, and the supply pressure may be relieved to a certain extent
.
Downstream demand gradually followed, but there was no significant improvement, and merchants mainly purchased just in demand
.
Supply and demand issues still weigh on
prices.
L2001 price opened low to the downside, below to test support near the lower Bollinger band, hourly KDJ indicator opening diverged downward, price action is expected to remain weak
.
Operationally, it is recommended that short orders in your hand can be held
with caution.