PVC futures price shock finishing operation

Futures market: as of 8.
17, the main PVC closed at 6509 yuan / ton, down 0.
03% from the previous month; Top 20 main long positions: 195955 (-5060), short positions: 181599 (-6308), net long positions: 14356 (+8473).

Spot and enterprise dynamics: as of 8.
17 East China (calcium carbide method) quotation: 6560 yuan / ton (0); South China (calcium carbide method) quotation: 6640 yuan / ton (-10); Yibin Tianyuan PVC started about 30%, the price was reduced, and the 5 type factory was 6750 yuan / ton; Shandong Dongyue's 120,000-ton PVC plant is currently about 50%, the price is slightly reduced, and the 5-type factory report is 6350 yuan / ton in cash
.

Upstream production profit: as of 8.
17 Northwest chlor-alkali profit of 852 yuan / ton, no change
from the previous day.
Shandong chlor-alkali profit -165.
55 yuan / ton, down 41.
67 yuan / ton
from the previous day.

Basis: 8.
17 South China basis +131; East China basis +51; basis slightly strengthened
.

Upstream raw materials: as of 8.
17, the quotation of North China calcium carbide was 4500 yuan / ton, which was unchanged from yesterday's price; Shaanxi Lanchar quoted 1286 yuan / ton, no change
from yesterday's price.

PVC futures price lack of drive, short-term weak shock, social inventory still remains relatively high, demand side has not seen significant improvement, downstream procurement enthusiasm is not high, the overall spot transaction is light
.
Fundamentals remain weak
.
In the short term, the inflection point of inventory and demand has not yet appeared, while calcium carbide prices and chlor-alkali profits have given some price support
.
In summary, we treat the current PVC price operation trend with "range shock" and maintain a wait-and-see
view.