PVC continues to edge higher The rally is expected to continue

News: The total inventory of domestic PVC in East China and South China reached about 365,000 tons, down 02,000 tons, or 0.
54%,
from 367,000 tons last week.
The inventory shipment volume in the East China market increased, but the overall inventory intake was large, so the overall inventory level was higher
.

Upstream prices: naphtha CF Japan at $607/ton, flat; FOB Singapore was flat at $66.
82 a barrel
.
ethylene CFR Northeast Asia 1385, flat; CFR Southeast Asia was flat at $1285/mt
.
Domestic calcium carbide prices were stable, with East China reporting 3370 yuan, flat, and Northwest reporting 3060 yuan, flat
.

Spot market: CFR China was flat at $960, CFR Southeast Asia was flat at $965; North China calcium carbide law reported 6270 yuan / ton, up 40; ethylene law reported 6550 yuan / ton, up 30 yuan; East China calcium carbide method reported 6400 yuan / ton, up 50 yuan, ethylene method 6750 yuan / ton, up 150; South China calcium carbide method 6450, up 70 yuan, ethylene method 6800 yuan, up 100 yuan
.

The PVC1805 contract continued to move slightly higher, with a significant reduction in holdings, indicating that short funds took profits
.
Fundamentally, high inventories, environmental protection inspections and other factors have formed a certain suppression
of the futures price.
However, the current improvement in downstream demand may support futures prices
.

Technically, the MACD low golden cross is upward, and the KDJ indicator is volatile higher, indicating that the rally is expected to continue
.
In terms of operation, investors can take profits first when there is a sharp rise in their hands, and then retake them after they return
.