PVC futures prices fluctuated higher, and inventories rebounded to limit gains

News: 1.
Longzhong News news, Taiwan Formosa Plastics originally planned to start overhauling its 540,000 tons/year PVC plant in March, but due to the impact of the production reduction of Formosa Plastics plant in Texas, the expected maintenance or reduction has not been confirmed; The overhaul is tentatively scheduled to start next week to cooperate with the pipeline maintenance of the upstream raw material plant in the southern plant
.
2.
The Development and Reform Commission of Inner Mongolia Autonomous Region, in accordance with the work arrangement of dual control of energy consumption, the Development and Reform Commission of the autonomous region, the Department of Industry and Information Technology of the autonomous region and the Energy Bureau drafted the "Several Safeguard Measures on Ensuring the Completion of the "14th Five-Year Plan" Dual Control of Energy Consumption Target (Draft for Comments)", which is now open to the public for comments
.
The draft opinion points out that from 2021, 16 new capacity projects, including calcium carbide and polyvinyl chloride (PVC), will no longer be approved.

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

Warehouse receipt inventory: 7011 warehouse receipts, -561 sheets
.
Main positions: Top 20 long positions 203770, +11260, short positions 229936, +10628
.
Reduced
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
.
Formosa Plastics has a planned maintenance of the plant, which also provides some support
for the price.
Domestically, although domestic PVC production in February fell month-on-month, it was still much higher than the same period last year, and production in the first two months of 2021 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.
Last week, domestic PVC social inventories continued to rise, indicating that PVC is still in the accumulation stage, which is expected to limit the growth of PVC to some extent
.
In terms of operation, investors have a lot of high positions in their hands to reduce their holdings and drop their pockets for safety
.