The continuous plastic contract opened high and volatile, and the long and short sides are still deadlocked

News: Shenhua coal chemical linear intraday bidding volume of 1100 tons; The transaction volume was 0 tons, the high-pressure auction volume was 338 tons, the transaction volume was 0 tons, and the low-pressure bidding volume was 439 tons, and the transaction volume was 200 tons
.
Xinjiang high-pressure bidding volume was 100 tons, and the transaction was 50 tons
.
The two oil stocks were 1.
29 million tons, down 55,000 tons
from the previous day.

On March 3, Fu Xiangsheng, vice president of the Petrochemical Federation, revealed at the 2020 Petroleum and Chemical Industry Economic Operation Conference that the Petrochemical Federation will strictly control
the expansion of refining, PX and ethylene project capacity from this year.
Except for the national key bases and major projects planned and deployed in the "Petrochemical Industry Planning and Layout Plan" of the State Council, new and expanded refining projects and new PX and ethylene projects will be strictly controlled and shall not be approved
in violation of regulations.

Spot market: The focus of the domestic polyethylene market has shifted
upward.
The high-pressure opening price of the main regional sales company was partially raised, with a range of 100-150 yuan / ton, and the merchants actively overreported shipments, and the actual transaction was
acceptable.
As of the noon close, the North China market was up 50 yuan / ton; East China market rose 50 yuan / ton; The South China market rose 50-100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 2352 lots, intraday -0 lots
.
Main position: The top 20 long positions in the main contract are 1166186 lots, +1988 lots, short positions are 214860 lots, +1629 lots, and net positions are -48674 lots, with a decrease
in net shorting.

Summary: The accelerated spread of the overseas epidemic has caused market panic, and the absolute value of domestic two barrels of oil and petrochemical inventories is still high, indicating that downstream demand has not fully recovered, which also suppresses
linear prices to a certain extent.
However, the introduction of domestic stimulus policies weakened the market panic, and the two barrels of oil and petrochemical inventories continued to fall, which also eased the panic in the market to a certain extent, and the sharp rebound of crude oil to a certain extent increased market confidence and pushed up the cost support
of PE.
Overall, the two sides are still deadlocked, but market confidence has recovered, and the market is concerned about whether the pressure level of 7100 yuan can be broken
.
In terms of operation, it is recommended that investment can be lightly built and rebounded
when it falls.