The Spot Is Tight, The Raw Material Market Rose 43% This Week, And Some Large Areas Were Closed!

Hot spot

U.S. oil is still agitated by the weather, and the market has obviously shielded the unfavorable information of the epidemic.

The recent outbreak of the epidemic in various parts of the country. Considering that the Spring Festival is approaching, the arrangements for the flow of people during the Spring Festival may be intensively introduced in the near future, and downstream factories have a wait-and-see policy. In addition, Reuters reported that my country may release some crude oil reserves before and after the Spring Festival, but the release The reserve is mainly to take into account the demand for refined oil during the Spring Festival; the rise in short-term oil production costs may continue to push the market up.

Price

Crude oil in the outer disk strongly drives the chemical sector, and oil and chemical related varieties rise more and fall less, showing an overall upward trend. The recent trend of polyolefin is strong, but the actual market has more discussions and less transactions, and the current price lacks the support of trading volume.

From a technical point of view, the market fell on Friday night, basically giving up all the gains made during the day on Friday. At present, near the key pressure level, it is still a problem of volume and energy. If the disk is ready to break through, it should see the continuous increase in open interest, but what we see now is a continuous decline in volume and energy. The breakthrough formed by the stimulation on the crude oil side is difficult to sustain.

PE: The bottom of the running box: 8543, the central axis: 8702, the top: 8801; if the price breaks upward, the new range is: bottom: 8801, central axis: 8961, top: 9120

PP: The bottom of the running box: 8135, the central axis: 8266, the top: 8348; if the price breaks upward, the new range is: bottom: 8348, central axis: 8480, top: 8611

Basis

Despite the rise in futures Masukura, it failed to drive prices up sharply, and spot prices remained sluggish. Only arbitrageurs actively received goods to boost spot prices, and most resources kept prices unchanged. But in the afternoon, the downstream began to show signs of actively acquiring goods. East China PE basis is mostly flat to +50, and East China PP basis is -100 to -70.

In stock

The two oil inventories were 610,000 tons (52.5→61), an increase of 85,000 tons compared with last week. As the Spring Festival is approaching, downstream factories are on holiday one after another, and petrochemical inventories are at risk of accumulating.

Installation in Fujian

PE device:

The first-line 7050 (linear) of Fu Lian was converted to 222WF (linear).
The second line of Fu Lian 7042 (linear) was converted into 75056 (injection molding).

PP device:

Fulian Second Line 1714E1 (injection molding) was converted to 1100N (injection molding).