PP sideways trading volume significantly decreased

News: According to Longzhong statistics, in 2019, the production capacity affected by the maintenance of PP production equipment reached 4.
47 million tons
.
However, most of them are concentrated in the second and third quarters, and the maintenance volume in the first quarter is very small
.
There may still be a wave of stocking in the downstream of the pre-work, but the accumulation phenomenon after the holiday will be more obvious, and it is expected that the market supply will be sufficient in the first quarter of 2019, and it is difficult for prices to rebound sharply
.

Raw material price: naphtha CF Japan reported 461.
62 US dollars / ton, +6.
27%; FOB Singapore is trading at $48.
89/b, +6.
61%.

ethylene CFR Northeast Asia 930 USD/mt, -1.
06%; CFR Southeast Asia was trading at $820/mt, -1.
20%.

The FOB price of South Korean propylene is 898 US dollars / ton, +0.
34%, and the domestic price of propylene is 7875 yuan / ton, +1.
39%.

Spot price: Southeast Asia quoted $1080, +0%; The Far East was quoted at $1,050 / mt, +0%.

Domestic: North China Qilu 9050 -0%; East China Sanyuan 9050 yuan, -0.
55%; South China Maoming 9450 yuan, -0%.

PP1905 traded sideways, the trading volume decreased significantly, and the position volume increased
significantly.
Fundamentally, crude oil stopped falling and stabilized, and PP inventories fell to some extent, which provided some support
to futures prices.
Technically, MACD rose slightly, and KDJ mid-gold cross, indicating a weakening
of bearish strength.
Operationally, it is advisable
for investors to wait and see for the time being.