Analysis of major raw material market
Upstream dynamics: OPEC is trying to mitigate global oversupply by reducing production, but Nigeria, Libya, two non-participating countries have been increasing production, Iran’s oil production has increased to 3.8 million barrels / day, the United States shale oil production since last year has increased About 10%, the number of active rigs also reached the highest level in three years, even increased by 23 weeks, there are indications that crude oil surplus situation will exist for a long time, recently due to China’s supplementary energy strategic reserves, the past four months, China’s apparent crude oil consumption increased 5.4%, short-term impact by the Chinese factors, oil prices may oversold bounce. Japanese naphtha CF and Singapore FOB naphtha are rising, the cost of PP, PE cost support.
Device: June 26 Shanghai Sacco LLDPE device production 0220KJ, HDPE device parking, is expected to restart on July 15, after the restart is expected to produce 5301AA.
Spot market: North China PE prices slightly higher 50 yuan / ton, East China PE ups and downs each other, petrochemical prices temporarily stable, strong linear prices, high pressure and low pressure demand in general, mostly just need to purchase. PP prices in northern China also slightly higher, the majority of PP prices in East China offer up, the rate of up to 100 yuan / ton, petrochemical ex-factory price stable, the formation of a certain cost to the market support, the downstream factory with the take, big single almost no deal, Just need to purchase the main.
Technical analysis: PP, plastic constitute a typical wedge shape, there is upward rebound trend. OP, PP short-term base repair, the recent may usher in a rally, it is recommended PP, LLDPE empty light to lighten up, after the end of the rebound, after the end of the rally, Empty single Nanjing admission.