PVC main shock lower market may have technical adjustments

News: Asian PVC market offered, Southeast Asia at $825/ton, CFR China at $830/ton, CFR India at $855/ton
.

Spot market: Hebei market quotation reduced by 20 yuan / ton, the price of type 5 material including tax is delivered at 6790-6860 yuan / ton, the price of Inner Mongolia source of goods including tax is 6580-6650 yuan / ton, and the price of self-pickup without tax is 6220-6270 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts report 0 lots, intraday -0 lots
.

Main position: the top 20 long positions in the main contract are 104895 lots, -8526 lots, short positions are 110171 lots, -4902 lots, net positions are -5276 lots, net short increases
.

Summary: On the supply side: the autumn centralized maintenance of upstream production enterprises has basically ended, and the supply will show a gradual increase pattern in the later period; On the demand side: real estate data
surprises.
Total investment in real estate development and sales figures for new housing starts increased
significantly from the previous year.
Although the sales area is still lower than the same period last year, it also has a more significant increase
from the previous quarter.
Raw materials: the domestic calcium carbide market price has been adjusted down regionally
.
In addition, Taiwan's downward revision of December sailing schedule quotations has put some pressure
on market psychology.
However, China and the United States are expected to cancel tariffs in phases, and although the operating rate of PVC production equipment increased last week, the social inventory of PVC decreased significantly month-on-month and year-on-year, indicating that downstream demand has recovered and the speed of destocking has accelerated
.
The decrease in imports of PVC downstream products and the increase in exports also supported prices
.
Considering the large increase in PVC in the short term, there may be a need
for technical adjustments in the future market.
Operationally, it is recommended that investors can still sell short
positions lightly when they rebound.