PVC futures price dip recovery short-term need to prevent technical correction

News: 1.
According to Longzhong information statistics, the output of domestic PVC manufacturers in February 2021 was 1.
8643 million tons, a decrease of 5.
84% from the previous month, a significant increase of 24.
76% year-on-year, and a cumulative increase of 16.
84%
year-on-year.
2.
According to Longzhong information statistics, as of February 26, the total output of 24 PVC manufacturers increased by 152.
53%
compared with last week.
After the Spring Festival holiday, logistics and transportation resumed, downstream construction began one after another, and there was a certain procurement demand for PVC, so the shipment volume increased sharply this week and inventory declined
.
The production of 24 production enterprises did not fluctuate much, and the total output increased by 3.
14%
compared with last week.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 8550 yuan / ton, -100
.

Warehouse receipt inventory: 7692 warehouse receipts, -300 sheets
.
Main positions: Top 20 long positions 192510, -18132; short positions 219308, -13973
.
Increased
headroom.

Summary: It is rumored that some chemical companies in Texas have resumed production, but it will take time to fully resume work, and in Europe, the PVC plant Tavaux, due to the failure of the production line, the date of restart is undecided
.
South Korea, Taiwan, and India also have equipment for shutdown maintenance, and the United States, Europe and Asia have installed shutdown, and overseas supply is still tight
.
Domestically, although domestic PVC production in February fell month-on-month, it was still far higher than the same period last year, and the output in the first two months was also higher than the same period last year, indicating sufficient
domestic supply.
Downstream enterprises are affected by the New Year in their place of employment, and the resumption of work this year is significantly earlier
than that in the later years.
However, due to the rapid rise in prices after the holiday, the cost of enterprises has risen, and profit margins have been compressed, resulting in the operating rate of downstream enterprises not rising
significantly.
After a sustained sharp rise, PVC has signs of overbought in the short term, and the short-term need to prevent a technical pullback.