PVC oscillations go higher and downstream rigid demand remains

News: PVC social inventory continued to accelerate last week, down 5.
22% month-on-month, down 17.
26% from last year, in terms of East China, it increased by 1.
49% month-on-month and decreased by 13.
87% year-on-year, and South China decreased by 25.
76% month-on-month and 28.
99%
year-on-year.
East China stocks are 205,000 tons, South China 49,000 tons
.
At present, the social inventory of domestic PVC has fallen below the level of the
same period last year.

Last week, the operating rate of PVC production enterprises was 77.
92%, up 0.
68% month-on-month, down 2.
51% year-on-year, and this week there were Inner Mongolia Yili and Zhonggu maintenance, and it is expected that the operating rate this week will decline
.

Spot market: PVC market trend in Qilu Chemical City is rising, the price of calcium carbide 5 type material is about 6580 yuan / ton, the price of ethylene material S1000 is 6870 yuan / ton, the price of S700 is 6970 yuan / ton, and the transaction situation is general
.

Warehouse receipt inventory: exchange warehouse receipts reported 429 lots, intraday -0 lots
.
Main position: The top 20 long positions in the main contract are 128556 lots, +5040 lots, short positions are 132759 lots, +6821 lots, net positions are -4203 lots, net short increases
.

Summary: Asian demand is basically stable, but the rise in raw material prices has formed a cost support
for PVC to a certain extent.
Domestically, the maintenance of domestic production enterprises continued
.
Market supply is expected to increase
.
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.
In May, the apparent demand for PVC increased year-on-year and was higher than the same period last year, indicating that downstream rigid demand is still there
.
Social inventories have shown signs of accelerating their decline, and have now returned to below the level of the same period last year, indicating that PVC downstream demand has recovered well, supporting the price of PVC
.
Operationally, investors can set a take profit in their hands and hold
them cautiously.