PVC main contract volatility higher, after continued weakening, there are signs of rebound

News: 1.
According to China Chlor-alkali Network, the Henan Provincial Emergency Management Department recently released news that as of the end of last week, in the province's "risk prevention and hidden dangers and safe and safe celebration" action, the province inspected a total of 221 hazardous chemical enterprises, issued 178 rectification instructions, ordered 35 to suspend business for rectification, and closed and banned 1
.

2.
On August 29, Formosa Plastics announced plans to spend $333 million to expand the production capacity
of polyvinyl chloride at its Baton Rouge, Louisiana plant.
Formosa Plastics said the expansion project will increase production of polyvinyl chloride (PVC) by nearly 300 million pounds per year (136,000 tons/year), with production expected to begin in late 2021 or early 2022
.

Upstream raw material market: the mainstream price of calcium carbide market in northwest China is 3000 yuan / ton, 0; the mainstream price in Shandong region in North China is 3115 yuan / ton, 0
.
The price of CFR Far East in the Asian VCM market is 720 US dollars / ton, 0; CFR Southeast Asia is 750 US dollars / ton, 0
.

Spot market: the mainstream price of polyvinyl chloride SG-5 type East China spot market is 6650 yuan / ton, 0; the mainstream price of SG-5 in South China market is 6760 yuan / ton, -20
.

Warehouse receipt inventory: The exchange warehouse receipt reported 4140 lots, +520 lots within the day, which is in the historical high area
.
Main position: The top 20 long positions in the main contract are 120259 lots, 6570 lots, short positions are 103026 lots, 3104 lots, and net positions are 17233 lots, net long increases
.

Summary: The operating rate of polyvinyl chloride enterprises has declined, the maintenance loss has increased, Formosa Plastics Ningbo and Qingsong Jianhua have maintenance plans in September, and it is expected that the maintenance scale will expand and the supply will tighten
.
PVC social inventory declined, but still 58.
14% higher than last year, traders to warehouse slowly, downstream merchants to use as they go, affected by the Beijing-Tianjin-Hebei production restriction notice, the short-term downstream enterprises are expected to be difficult to improve, the overall demand is limited, and there is no support for the price in the short term
.
The main PVC contract continued to weaken and showed signs of rebound, KDJ indicators converged in the oversold zone, focusing on pressure around 6500 above, and support around 6400 below, and it is expected that the futures price will be repaired and adjusted
.
Operationally, it is recommended that short orders in your hand can be closed on
dips.