A brief comment on the PP market of China Plastics

On March 14, China Plastics warehouse receipt PP market brief comment

I. Market Overview: crude oil remained at a high level and the spot market was getting hot. However, today, the overall performance of China Plastics PP warehouse receipt market was average, and the market confidence was still slightly insufficient. The opening price opened low and went up slightly, and then accelerated to fall again. The buyers in the middle and rear prices supported the shock upward until the end of the price. China Plastics PP warehouse receipt index closed at 1283 Another 72 points, down 0.48 points from the previous trading day. Technically, the daily K-line closed at the short positive line, the physical center of gravity moved down, and the 5-day moving average rose above the physical center of gravity; The KDJ index fell back, and the overbought disc was bolted to the upper area of the experimental machine through the step hole; The opening of the Bollinger line continues to enlarge, the price break line moves on the upper rail, and the price break line operation is simple. Today, the market atmosphere is still active and the transaction is still good; Intraday sales accounted for a large proportion, and most of the operations changed hands. Many buyers closed their positions, while the sellers took advantage of the situation to build their positions, with little change in orders

II. Analysis of main varieties:

pp0805 opened at a high of 12355 yuan/ton and went low. It continued to fluctuate downward in the early stage. After the bottom fell, the buyer supported the rise. The rising trend in the middle and rear markets was annihilated, and the shock went down to the end of the market. The settlement price of pp0805 today was 12339 tons, down 10 yuan/ton compared with the previous trading day. The daily K-line closed at the short negative line, and the center of gravity entity rose slightly. The 5-day and 10-day moving average rose at the lower part of the entity's center of gravity; KDJ indicators continue to fall, subject to overbought areas. Today's trading atmosphere was good, and the volume remained stable

pp0806 opened low and went high at 12400 yuan/ton. The buyers in the middle and front session supported the shock and upward movement, and the back session fell back, but the upward trend still existed, and the session ended at 12442 yuan/ton. A-type machine 1 is generally not used or eliminated. Today, the settlement price of pp0805 is 12449 yuan/ton, up 16 yuan/ton compared with the previous trading day. The daily K-line closes at the short positive line, the center of gravity entity moves up slightly, and the 5-day moving average crosses the center of gravity of the entity; KDJ indicators are in a flat trend and subject to overbought areas. Today, the trading atmosphere was good, and the double volume increased significantly, replacing pp0804 as the new main variety

III. comprehensive comments:

the settlement price of crude oil futures rose slightly on Thursday, as the impact of the weak US dollar on investors exceeded the impact of the increase in US crude oil inventories. The settlement price of April light sweet crude oil futures on the New York Mercantile Exchange rose 41 cents, or 0.4%, to $110.33 a barrel. In April, crude oil futures hit US $111 per barrel, hitting a record high for the seventh consecutive day, but failed to hold most of the gains. The settlement price of Brent crude oil futures contract on ICE Futures Exchange rose $1.27 to $107.54 a barrel. The PP market in Yuyao plastic city performed well, and the price continued to rise. At present, the overall resources in the market are relatively few. In addition, most traders are optimistic about the future market. Limited shipment is even more tight. The only deficiency is that the transaction coordination is not effective. The reason is that with the rising market price and the rising cost of raw materials, the downstream factories are difficult to adapt to the fashion, the production enthusiasm is not high, and the actual demand drops. The latest mainstream quotation of domestic wire drawing/injection plastic is RMB/ton, that of domestic copolymer is RMB/ton, that of imported copolymer is RMB/ton, and that of monofilament powder is RMB 12250/ton

it is expected that the sinoplastics PP warehouse receipt market is likely to be subject to shock consolidation and slight upward movement in the near future

(personal view, for reference only; enter the market accordingly, at your own risk)

source of information: China plastics trading

note: the source of this reprint is indicated. The reprint is for the purpose of transmitting more information, and does not mean that you agree with their views or confirm the authenticity of their contents