PVC main shock higher market demand gradually weakened

News: PVC social inventory increased by 24.
55% month-on-month last week, 1.
43% year-on-year, 21.
28% month-on-month and 9.
62% year-on-year in East China, and 40% month-on-month and 22.
22% year-on-year decrease in South China
.
East China stocks are 114,000 tons, South China 28,000 tons
.

The profit of calcium carbide PVC enterprises decreased by 132 yuan / ton, and the profit of ethylene PVC enterprises decreased by 117 yuan / ton
compared with last week.

Spot market: PVC market in Qilu Chemical City market is narrowly reduced
.
The quotation of calcium carbide method 5 type is 6730 yuan / ton (Xinfa does not include tax 6290 yuan / ton), the quotation of ethylene method Qilu material S700 includes tax 7030 yuan / ton, and the quotation of S1000 is 6880 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 948 lots, +0 lots
within the day.
Main position: The top 20 long positions in the main contract are 165008 lots, -17318 lots, short positions are 172785 lots, +20274 lots, net positions are -7777 lots, net space is reduced
.

Summary: Fundamentally, the operating rate of PVC production enterprises this week was 81.
89%, down 0.
98% from last week and 0.
72% from last year; PVC production enterprises lost 28,200 tons, an increase of 4.
06%
from last week.
The operating rate of production enterprises has declined, and the spot supply of PVC has decreased
.
PVC social inventory increased by 24.
55% month-on-month last week and 1.
43%
year-on-year.
Shows insufficient
market demand.
Downstream maintenance just need to purchase
.
Far futures source procurement is not active, and the psychology of high price resistance is enhanced
.
The domestic calcium carbide market stopped falling and stabilized, the market supply was in the stage of gradual consumption, and the downstream purchasing manufacturers increased their demand with the end of maintenance and the increase of load
.
These factors support the price of PVC
.
The long holiday is coming, and it is expected to start in the second half of this week, downstream companies will have a holiday one after another, and demand is expected to weaken
again.
Operationally, it is recommended that investors trade in
ranges.