Downstream rigid demand is still in PVC oscillation higher

News: The operating rate of PVC production enterprises last week was 77.
24%, an increase of 0.
65% month-on-month, and a year-on-year decrease of 0.
49%.

Last week, PVC social inventory decreased by 3.
60% month-on-month and 12.
99% year-on-year, in terms of East China, it increased by 0.
50% month-on-month and decreased by 15.
13% year-on-year, and South China decreased by 14.
29% month-on-month and 5.
71%
year-on-year.
East China stocks are 202,000 tons, South China 66,000 tons
.

Spot market: Hebei market quotation is stable, the current Hebei area 5 material delivery price of 6200-6300 yuan / ton delivery, Inner Mongolia source of goods factory tax including tax self-raised price 6030-6100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 409 lots, intraday -0 lots
.
Main position: the top 20 long positions in the main contract are 136370 lots, -3484 lots, short positions are 127060 lots, +1942 lots, and the net position is 9310 lots, net long decrease
.

Summary: Supply in Asia decreased slightly due to plant overhauls, but demand was also weaker
.
Domestically, a significant increase in imports in May is expected to increase supply pressure
in the market.
The maintenance of domestic production enterprises continued
.
Market supply is not expected to change
much.
On the demand side, in April, the domestic real estate market rebounded slightly, while the infrastructure industry also boosted the demand for
PVC to a certain extent.
In May, the apparent demand for PVC increased year-on-year and was higher than the same period last year, indicating that downstream rigid demand is still there
.
Social inventories continued to decline month-on-month, and Formosa Plastics' July quotations raised to support
PVC prices.
Operationally, investors can set a take profit in their hands and hold
them cautiously.