PVC main force to probe the low and rebound, the market transaction is relatively light

News: The domestic calcium carbide market is still running steadily, some sources of goods in Wuhai area flow to Qinghai, inventory has a narrow decline, and the factory price of enterprises remains stable and wait-and-see
.
Downstream arrivals decreased slightly, which had no impact on the start of construction of enterprises, and supply and demand were deadlocked
.

Spot market: Qilu Chemical City PVC market weak downward, offer down
.
The price of calcium carbide type 5 is 5880 yuan / ton, the price of ethylene Qilu S1000 is 5960 yuan / ton, and the price of S700 is 6100 yuan / ton.

Warehouse receipt inventory: exchange warehouse receipts reported 4010 lots, intraday -120 lots
.
Main position: The top 20 long positions in the main contract are 87539 lots, -2621 lots, short positions are 73648 lots, +1010 lots, and the net position is 13891 lots, net long decrease
.

Summary: The accelerated spread of the overseas epidemic has caused concern, and the weak trend of crude oil has also hit market confidence
to a certain extent.
And the operating rate of PVC production enterprises has rebounded, and social inventory is still high, indicating that the market is still oversupplied
.
Formosa Plastics' reduction in PVC prices in April also suppressed
domestic prices to a certain extent.
Although most of the PVC downstream products enterprises have resumed work, the overall operating rate is still not high
.
These factors will suppress
the price of PVC.
However, the Fed's opening of the unlimited QE mode has boosted market confidence to a certain extent, and it is not ruled out that there will be follow-up stimulus policies in the United States that also give the market hope, and the market will focus on whether crude oil can stop falling and rebound
.
In terms of operation, it is recommended that investors can take advantage of the low and settle their pockets in their
hands.