Downstream enterprises have successively taken a holiday PVC market demand has weakened

Market conditions: On January 23, the PVC main V2005 contract fell slightly, closing at 6450 yuan / ton, -25 yuan from the previous trading day; Volume 67915 lots, -40772 lots; Position 179323 lots, -4616 lots, basis 300 yuan, +25 yuan; 5-9 spreads 40 yuan, -5 yuan
.

News: The operating rate of PVC production enterprises in the week was 77.
63%, down 1.
42% from last week and 6.
92% lower than the same period last year; Environmental protection and recent calcium carbide transportation affected the start of enterprises, Tianye, Daguhua, LG, Liancheng and other enterprises reduced load, and Chengdu Huarong began maintenance
.

Affected by limited supply and rising freight rates, suppliers in the Asian market said that PVC prices in March are still expected to rise by $20-30/mt from February, after February prices rose by $20/mt
from January.
In addition, European prices rose by $10/mt to $830/mt FOB Northwest Europe
.

Spot market: The ex-factory prices of petrochemical and CNPC enterprises remained stable
.
Most of the manufacturers are delisted and on vacation, the trading atmosphere in the market is light, traders accompany the market to ship, the mainstream quotation is stable, the price of calcium carbide five-type material in the East China market is 6720 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 4755 lots, intraday - 805 lots
.
Main position: the top 20 long positions in the main contract are 132588 lots, -1941 lots, short positions are 135068 lots, -1376 lots, net positions are -2480 lots, net short increases
.

Summary: The operating rate of PVC production enterprises during the week was 77.
63%, down 1.
42% from last week and 6.
92% lower than the same period last year; It shows that the market supply has decreased
.
PVC social inventory increased by 9.
15% month-on-month and decreased by 0.
64% year-on-year, indicating insufficient
market demand.
Downstream maintenance just need to purchase
.
Far futures source procurement is not active, and the psychology of high price resistance is enhanced
.
The domestic calcium carbide market stopped falling and stabilized, and the price of PVC in Europe, America and Asia increased
.
These factors support the price of PVC
.
Downstream companies have been on holiday one after another during the week, and demand has weakened
.
Operationally, it is recommended that investors wait and see for the time being
.