September 28 LLDPE morning review

Raw material prices: Japan naphtha CF Japan reported 402.
12 yuan / ton, down 8.
76; naphtha FOB Singapore reported 43.
19 US dollars / barrel, down 1
.
Ethylene CFR Northeast Asia was flat at $1165/mt, and CFR Southeast Asia was flat at $1040/mt
.

Spot prices: foreign spot market prices are basically flat, and Far East is flat at $1130 / ton; The Middle East was flat at $1119/mt; Domestic market prices fell slightly, North China Daqing reported 8800 yuan / ton, flat; East China Yuyao Jilin Petrochemical 9250 tons, flat; South China News 9150 yuan / ton, flat
.
Northwest Dushanzi reported 8900 yuan / ton, unchanged
.

News side: 1.
On September 27, some petrochemical PE stocks in North China decreased by about
20.
45% compared with the stocks on September 20.
2.
It is understood that Shenhua Xinjiang's MTO device was successfully tested today, and polyolefin products are planned to be produced on October 2, and the specific situation will continue to be tracked and reported
.
Shenhua Xinjiang has a high-pressure production capacity of 270,000 tons/year, and a production capacity of 2426H
after start-up.

Warehouse receipt data: 11382

Summary of views: Affected by the maintenance of the device in the early stage, the overall operating rate declined, but with the gradual resumption of the plant, it is expected that the market supply will increase slowly, coupled with the inventory of exchange receipts flowing into the market in September, causing certain supply pressure in the short term, the market is in the destocking stage, the downstream demand follow-up is insufficient, and the new capacity device is expected to produce products, etc.
, which is expected to suppress the price upward momentum, but the short-term downstream holiday replenishment, the price may recover slightly
.