PVC narrow finishing range trading is appropriate

News: Domestic PVC production in May 2020 was 1.
7064 million tons, an increase of 9.
99% from April and 9.
02% year-on-year; The cumulative output from January to May was 8.
2934 million tons, an increase of 1.
81%
over last year.

Spot market: Qilu Chemical City PVC market narrow finishing, calcium carbide method 5 type material price is about 6370 yuan / ton, ethylene method is affected by Qilu unstable start, the price is high, S1000 price is 6600 yuan / ton, S700 price is 6900 yuan / ton, the transaction situation is general
.

Warehouse receipt inventory: exchange warehouse receipts reported 601 lots, today - 76 lots
.

Main position: The top 20 long positions in the main contract are 149083 lots, -4029 lots, short positions are 127533 lots, -5242 lots, and the net position is 21550 lots, which is a net long increase
.

As the easing of the overseas epidemic has boosted market confidence, major oil producers have extended the production cut period, and EIA has raised crude oil demand to support
the market.
Fundamentally, crude oil fluctuated at a high level, and the price of vinyl chloride in Asia rebounded
.
The maintenance of domestic production enterprises continued, and the pre-sales situation was better
.
On the demand side, in April, the domestic real estate market rebounded slightly, while the infrastructure industry also boosted the demand for
PVC to a certain extent.
The decline in PVC operating rate, the continued decline in social inventory month-on-month, and Formosa Plastics' increase in July quotations all supported
the price of PVC.
However, downstream enterprises are more cautious about PVC procurement and maintain the focus on just-in-demand procurement
.
The future market focuses on whether the support of the lower moving average is strong
.