PVC main shock higher It is expected that there will be certain rebound requirements in the future market

News: PVC social inventory last week decreased by 21.
43% month-on-month and 30.
77% year-on-year, in terms of East China, it decreased by 23.
42% month-on-month and increased by 19.
05% year-on-year, and South China decreased by 6.
67% month-on-month and 63.
16%
year-on-year.
East China stocks are 85,000 tons, South China 14,000 tons
.

The operating rate of PVC production enterprises last week was 78.
02%, down 1.
43% from last week and 4.
30% lower than last year; Among them, the operating rate of calcium carbide method was 79.
67%, a decrease of 1.
03% month-on-month and a year-on-year decrease of 1.
60%; The ethylene operating rate was 76.
44%, down 3.
48% month-on-month and 17.
58%
lower than last year.

Spot market: Guangzhou PVC market 5 spot is scarce, some sources of pre-sale until mid-to-late December, the mainstream price raised to 7080-7150 yuan / ton
.
Zhongtai 7150 yuan / ton, Tianye 7140 yuan / ton, Yili 7120 yuan / ton, salt lake 7080 yuan / ton, Junzheng 7150 yuan / ton, ethylene Dagu 1000 size 7150 yuan / ton, 800 large / 800 small 7150 yuan / ton, 1300 type 7330 yuan / ton, Dagu 700 type 7150 yuan / ton; Haijing 800 type 7150 yuan / ton
.
Type 5 cargo sources in Shantou area rose by 50 yuan / ton, Junzheng Lao 7040 yuan / ton, Tianhu 7000 yuan / ton, Yili 7050 yuan / ton, sea level 7020 yuan / ton, real negotiation
.

Warehouse receipt inventory: Exchange warehouse receipts reported 3 lots, intraday -0 lots, in the historical low area
.

Main position: The top 20 long positions in the main contract are 141931 lots, +5053 lots, short positions are 137000 lots, +10292 lots, and the net position is 4931 lots, net long decrease
.

Summary: The Asian PVC market is sluggish, and Taiwan's downward revision of December sailing schedule quotations has put some pressure
on market psychology.
On the supply side: the autumn centralized maintenance of upstream production enterprises has basically ended, and the output of increased production by the end of this year may reach 710,000 tons, and the supply will show a gradual upward pattern; Demand: Downstream terminal enterprises entered the off-season of previous years, and with the drop in temperature, downstream construction was restricted and demand was flat
.
Raw materials: the domestic calcium carbide market price has been adjusted down regionally
.
At present, the operating rate of Henan Shenma is 80%, and it has recently resumed full load, and Tangshan Sanyou has resumed driving
.
Anhui Huasu started production on the 18th with a new production capacity of 160,000 tons
.
Increased production weighed on
prices.
However, China and the United States are expected to cancel tariffs in phases, and PVC equipment maintenance unexpectedly increased in mid-November, 5% higher than the same period last year, PVC social inventory decreased by 21.
43% month-on-month, down 30.
77% year-on-year, the speed of destocking has accelerated to boost market confidence, in addition, PVC downstream products imports decreased, exports increased also supported prices
.
It is expected that PVC will have certain rebound requirements
in the future.
In terms of operation, it is recommended that investors can set up a profit in their hands and hold
them cautiously.