PVC futures price volatility lower, later demand may decrease

News: 1.
Longzhong Information reported on December 28: This week's social inventory increased by 12.
83% compared with last week, and increased by 28.
66% year-on-year; Among them, East China increased by 14.
93% month-on-month and 29.
42% year-on-year; South China increased by 2.
53% month-on-month and 24.
62%
year-on-year.
East China 89,300 tons, South China 16,200 tons
.
2.
PVC imports in November 2020 were 49,900 tons, down 2.
92% month-on-month and 16.
83% year-on-year, and a total of 908,900 tons from January to November, an increase of 51.
42%
over the same period last year.
PVC exports in November were 107,400 tons, an increase of 11.
41% month-on-month and 270.
34% year-on-year; From January to November, the cumulative export was 551,800 tons, an increase of 14.
68%
over the same period last year.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 7500 yuan / ton, -300
.

Warehouse receipt inventory: 4271 warehouse receipts, +0 sheets
.
Main positions: Top 20 long positions 259137, +14305, short positions 219454, +4610
.
Net increase
.

Summary: PVC prices in Asia remain firm, and the strong trend of domestic calcium carbide prices supports PVC prices
.
However, after entering December, the maintenance of PVC equipment has decreased, the operating rate has rebounded significantly, and the market supply has also increased
.
Affected by the power rationing policies in various places, the overall operating rate of domestic PVC downstream products enterprises this week has decreased steadily, and the general mentality is not good
.
The operating rate of sample PVC profile products enterprises decreased
significantly.
PVC pipe products enterprises maintain low-load operation
.
Some plants in the northern downstream continued to reduce production or even stop production
due to cold weather.
PVC inventories have been accumulated for four 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 capacity that has been put into operation and resumed production is gradually increased.
At present, PVC prices are in the historical high area, resulting in downstream losses, the willingness of enterprises to accept orders has declined, and the operating rate has also declined, most of which maintain low-load operation, resulting in a decrease
in demand in the later stage.
In operation, investors can set the take profit for short orders in their hands and hold
them cautiously.