Market demand is insufficient PVC main force fell slightly

News: The operating rate of PVC production enterprises this week was 82.
87%, an increase of 1.
92% from last week and 1.
40% year-on-year; Among them, the calcium carbide method was 84.
16%, an increase of 1.
83% month-on-month and 2.
48% higher than the same period last year, and the ethylene method was 83.
39%, an increase of 1.
99% month-on-month and a year-on-year decrease of 3.
72%.

The maintenance loss of PVC manufacturers in this cycle was 27,090 tons, down 0.
82 from last week, and the maintenance loss in December was 140,000 tons, down 31.
41%
from November.
The operating rate of production enterprises has increased, equipment maintenance has decreased, and the supply of PVC market has continued to rise
.

Spot market: Hebei market is stable, the current 5 type material including tax price 6640-6710 yuan / ton delivery, Inner Mongolia source of goods including tax self-raised price 6430-6500 yuan / ton, excluding tax self-raised price 6040-6110 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 360 lots, intraday +360 lots
.
Main position: The top 20 long positions in the main contract are 162178 lots, -5028 lots, short positions are 167111 lots, -4628 lots, net positions are -4933 lots, net short increases
.

Summary: Fundamentally, the operating rate of PVC production enterprises this week was 82.
87%, an increase of 1.
92% from last week and 1.
40% year-on-year; PVC production enterprises maintenance loss was 27,090 tons, down 0.
82 from the previous month, and the maintenance loss in December was 140,000 tons, down 31.
41%
from November.
The operating rate of production enterprises has increased, and the spot supply of PVC is sufficient
.
PVC social inventory increased by 39.
23% month-on-month last week and decreased by 12.
31% 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, the market supply was in the stage of gradual consumption, and the downstream purchasing manufacturers increased their demand with the end of maintenance and the increase of load
.
These factors support the price of PVC
.
At present, PVC fundamentals are weak, but it remains to be seen
whether the situation in the Middle East will ferment further.
Operationally, it is recommended that investors trade in
ranges.