Downstream demand has recovered PVC contracts have fluctuated higher

News: Asian market quote in CFR China; The sales reference is in the Northeast Asia region of 630-660 US dollars / ton, and there is Southeast Asian intention to quote at 670 US dollars / ton CFR China, but there is no buying news; According to sources: Taiwan Formosa Plastics is expected to announce the June shipping schedule price within the day, and it is expected to increase by 20-30 US dollars / ton compared with May
.

Spot market: the PVC market trend of Qilu Chemical City is rising, the price of calcium carbide 5 type material is about 5970 yuan / ton, the price of ethylene method S1000 is 5960 yuan / ton, the price of S700 is 6120 yuan / ton, and the transaction situation is general
.

Warehouse receipt inventory: exchange warehouse receipts reported 1953 lots, +0 lots
within the day.
Main position: the top 20 long positions in the main contract are 144350 lots, -3656 lots, short positions are 141312 lots, -3270 lots, net positions are 3038 lots, net long decrease
.

Summary: The overseas epidemic seems to be showing signs of easing, and vaccine research has also been positive, which has restored market confidence to a certain extent, and the voluntary reduction of production by major oil-producing countries has also supported the market
.
In the industrial chain, last week, although the operating rate of production enterprises increased, the social inventory of PVC still fell, indicating that downstream demand has recovered
.
In addition, the prices of raw materials calcium carbide, ethylene, vinyl chloride and dichloroethane have all stopped falling and rebounded, which is expected to reconstruct the cost support
of PVC.
These factors will form a certain support
for the price of PVC.
Operationally, investors can hold long positions with caution
.