PVC contracts shrink and increase positions, and futures prices slightly higher

News: 1.
According to Longzhong Information: last week's social inventory increased by 15.
57% compared with last week, and increased by 41.
67% year-on-year; Among them, East China increased by 25.
53% month-on-month and 33.
97% year-on-year; South China decreased by 16.
84% month-on-month and increased by 97.
50%
year-on-year.
Industry inventories (production + society) increased by 15.
57% month-on-month and 25.
99%
year-on-year this week.
East China 77,700 tons, South China 15,800 tons
.
2.
U.
S.
PVC production in November increased 8.
4% from October to 1.
326 billion pounds, and exports from November were 293 million pounds, up 65% from 177 million pounds in October, but down about 24%
from November 2019 to 385.
8 million pounds.
Formosa Plastics plant in the United States resumed production this week, but Westlake Chemical has not resumed production, and production is expected to recover
.
3.
The Brazilian government recently announced in the official gazette that it decided to reduce the PVC import tariff from 14% to 4%.

The new tariffs are effective for suspended PVC products under HS code 3904.
1010, which came into effect
on December 11.
Import duties are initially valid for 3 months
.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 8450 yuan / ton, -50
.

Warehouse receipt inventory: 3741 warehouse receipts, +940 receipts
.
Main positions: Top 20 long positions 216692, +16229, short positions 205481, +16709
.
Net excess decrease
.

Summary: PVC prices in Asia remain firm, and the strong trend of domestic calcium carbide prices supports PVC prices
.
However, after entering December, PVC inventories have accumulated for two consecutive weeks, and the supply-demand relationship may change
in the later period as the weather turns cold, downstream enterprises stop work and the 1.
2 million tons of new production and resumed production capacity gradually increase the load.
At present, the price of PVC is at a historical high, resulting in obvious downstream losses, with the end of old orders, new orders reduce orders, or even do not accept orders, resulting in later demand or will decrease
.
In anticipation of increased supply and reduced demand, PVC is expected to have certain pullback requirements
.
In operation, investors can set the take profit for short orders in their hands and hold
them cautiously.