Downstream stocking willingness is weak, PVC main contracts fell slightly

News: The latest quotation of Formosa PVC in Taiwan Province was raised by $10/ton in March from February to $900/ton CIF India, $870/ton CFR South China ports/Southeast Asia, FOB Taiwan at $840/ton
.

Spot market: Linyi PVC market weak operation, downstream has not resumed production, market quotations are scarce, slightly loose compared with yesterday, the delivery price is about 6480-6520 yuan / ton, inquiries are rare
.

Warehouse receipt inventory: exchange warehouse receipts reported 4755 lots, intraday -0 lots
.
Main positions: The top 20 long positions in the main contract are 142771 lots, -1567 lots, short positions are 132878 lots, -932 lots, net positions are 9893 lots, net long decreases
.

Summary: The introduction of domestic stimulus policies has weakened the market panic, and the operating rate of PVC manufacturers has fallen after the holiday, indicating that production enterprises have significantly reduced production
.
However, due to the impact of transportation restrictions and sluggish downstream demand, PVC social inventory increased by 29.
63% month-on-month and decreased by 6.
91%
year-on-year.
In terms of demand, after the Lantern Festival, the resumption rate of downstream enterprises is still not high, and some real estate enterprises will not be able to resume work until February 20 due to local government policy restrictions; The resumption time of individual real estate enterprises has not yet been determined, and the resumption time is arranged
according to the changes of the epidemic.
Therefore, the willingness of downstream enterprises to stock goods is weak
.
At present, it is in the off-season of PVC demand, downstream demand is insufficient, coupled with the need to delay the start of downstream construction, it is expected that the sluggish downstream demand will inhibit the price of
PVC.
It is recommended that investors can take appropriate short
positions on the high.