PVC futures prices closed slightly higher, and demand may weaken as the weather turns cold

News: 1.
In October 2021, the domestic production of PVC increased
significantly.
Data show that in October 2021, China produced a total of 1.
7085 million tons of PVC, +116,400 tons month-on-month, an increase of 7.
31%, and -55,200 tons year-on-year, an increase of -3.
13%.

From January to October 2021, China produced a total of 18.
575 million tons of PVC, an increase of 1.
576 million tons over the same period last year, a year-on-year increase of 9.
27%.

Power cuts and production restrictions will continue to ease in November, and PVC production is expected to pick up
.
2.
In December 2021, the number of devices scheduled for maintenance was reduced
.
The data shows that 8 sets
of equipment are planned to stop or reduce production in December.
A total of 1.
82 million tonnes of capacity was involved, down from 3.
42 million tonnes
in November.
Among them, there are 5 sets of units with a production capacity of 620,000 tons, and 3 sets of units are overhauled until January 2022, involving a production capacity of 1.
2 million tons, and the market supply of PVC is expected to increase
in December.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 9550 yuan / ton, +50
.

Warehouse receipt inventory: 1596 warehouse receipts, -788 sheets
.
Main positions: Top 20 long positions 212617, -12675; short positions 219678, -10501
.
Increased
headroom.

Summary: Last week, the operating rate of PVC production enterprises reported 75.
57%, an increase of 0.
82% month-on-month and a year-on-year decrease of 3.
31%; PVC production increased slightly, to 414,600 tons, up 2.
09% month-on-month and down 0.
87%
year-on-year.
As calcium carbide cost prices fall, PVC companies' operating load expectations have rebounded slightly this week, and market supply is expected to increase
.
Last week, PVC downstream products enterprises started basically stable, East China power rationing was basically canceled, and enterprises adjusted production
according to their own orders.
Winter is coming, terminal demand is not good, and orders have not increased
significantly.
Demand is expected to weaken
as the weather gets colder.
As of November 22, the domestic PVC social inventory was 143,100 tons, down 8.
03% from the previous month, indicating that the pressure on the supply side was not great
.
The intraday V2201 contract closed slightly higher, indicating pressure on it and support
below.