PVC main force in a narrow range lower price is expected to be weak in the short term

News: 1.
In order to effectively deal with heavily polluted weather, on September 22, the Shandong Provincial Heavily Polluted Weather Emergency Response Team issued the "Letter on Effectively Responding to the Heavily Polluted Weather Process from September 25 to 29", suggesting that 13 cities including Jinan, Zibo, Weifang and Linyi issue an orange warning at 0:00 on September 23 and start a Level II.
emergency response at 0:00 on September 24, while requiring industrial enterprises to take emission reduction measures such as limiting production and stopping production in accordance with the revised emergency emission reduction list.
Construction sites and other dust sources stop construction operations and muck transportation in dust-generating links, and strengthen control measures for heavy-duty diesel trucks to minimize road transportation
.
2.
According to Longzhong statistics, the apparent consumption of domestic PVC in August 2019 was 1.
6019 million tons, down 1.
17%
from July.

Upstream raw material market: the mainstream price of calcium carbide market in the northwest region is 3100 yuan / ton, 0; the mainstream price in Shandong in North China is 3295 yuan / ton, +25
.
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 PVC spot market traded calmly
during the day.
The mainstream price of SG-5 type East China spot market is 6720 yuan / ton, 0; the mainstream price of SG-5 in South China market is 6800 yuan / ton, 0
.

Warehouse receipt inventory: Exchange warehouse receipts reported 8640 lots, intraday -200 lots, in the historical high area
.
Main position: The top 20 long positions in the main contract are 142129 lots, +4281 lots, short positions are 117339 lots, +3996 lots, and the net position is +24790 lots, which is a net increase
.

Summary: Approaching the holiday, road security inspection is strengthened, calcium carbide transportation is cautious, or it forms a certain support
for costs.
This week, the operating rate of PVC enterprises has declined, social inventory continues to decline, and the current inventory pressure is acceptable
.
However, near the National Day, affected by the notice of restricted production in the Beijing-Tianjin-Hebei region downstream, it is expected that it will be difficult to start construction, and the enthusiasm for raw material procurement is general, and the demand is weak
.
The price of the main contract of V2001 fell in a narrow range, and the KDJ indicator opened to diverge downward, and the price is expected to be weak and volatile
in the short term.
If demand does not improve in the later stage, it is expected that prices will continue to fluctuate in a wide range in the medium and long term
.