LLDPE raw material express: crude oil appears to rise, even plastic short-term gain support
LLDPE raw material express: crude oil appears to rise, even plastic short-term gain support
Performance review
Yesterday domestic market sentiment is sufficient, better overall performance, all the plates have sprung up strong varieties, especially indexes, plastic (10495, 30.00, 0.29%) is also follow a rebound, LLDPE1209 open slightly higher at 10520 yuan, after the opening back slightly, but afternoon trading in the stock index by pulling up, eventually closed at 10555 yuan, the previous settled up 70 yuan, or 0.67%, position to reduce 3576 of 293000 hands, while the volume shrink to 449000 hands.
Late also cooperate with peripheral market, trend, European and American stock market sharply rise, U.S. stocks and the biggest one-day gain in almost a month, the dollar index is sharply lower, metal market volatility, the crude oil in the stock market also driven upward, light, sweet crude futures contracts may settled up 94 cents, to $103.64 a barrel, or 0.9%. ICE may brent crude oil futures settled up $1.53, or 1.3 percent, to $121.71 a barrel.
Fundamental analysis
The President of the federal reserve bank of New York reiterated that interest rates are likely to remain low and traders are optimistic about global growth prospects. In addition, the IEA said Opec production had exceeded market demand in the first quarter, while Saudi Arabia and China were replenishing their crude reserves. The agency said global crude oil inventories rose by as much as 1.2 million barrels a day in the first quarter of this year. The report suggests that although western sanctions against Iran are becoming more stringent, the supply of crude oil is not likely to be disrupted by market concerns. The IEA said Iran's oil production was down almost 10 percent from the sanctions.
Economists surveyed by dow Jones newswires expect first-quarter GDP growth of 8.3 per cent in the first quarter from a year earlier. Investors should pay close attention.
In the fundamentals of plastics, Asian naphtha fell on Wednesday. Japan's April naphtha price was down 18.50 dollars at $10,46.5 a tonne. Asian vinyl markets closed Wednesday. CFR northeast Asia report 1361.5-1363.5 usd/ton; CFR southeast Asia reported 1400.5-1402.00 / ton. Meanwhile, the price of PE factory of each manufacturer is stable, and the main price of LLDPE is 10450-10600 yuan/ton, which is settled at the end of the month. The spot market follows, the current average price is 10500-10700 yuan, the terminal demand is not significantly improved, with small purchase mainly, the market trading continues the cold and clear.
The overall analysis
Recent international market volatile, peripheral market continued to fall after nearly two days turnaround, especially the European and American stock market rebound is bigger, boost market sentiment, the domestic market linkages, crude oil is also in 100, the dollar strong, must support of domestic chemical composition. However, from the downstream, the lifting of demand has weakened, and the recent performance has been more dependent on the trend of crude oil. If market sentiment is frustrated, the market will weaken further. From the current look, peripheral for short-term trading or repeated shocks, yesterday back above 10500, the early stage of the empty single timely check, trend still need to wait for opportunity, activists short-term [10500106] 50 interval operation.
