PVC probes low and rises, infrastructure drives market demand

News: The apparent consumption of PVC in May 2020 was 1.
7726 million tons, an increase of 14.
68% month-on-month and 10.
60% year-on-year; From January to May, the total was 8.
3611 million tons, an increase of 2.
11%
year-on-year.

Spot market: Qilu Chemical City PVC market narrow downward, calcium carbide 5 type material price is about 6230 yuan / ton, ethylene price S1000 price is 6580 yuan / ton, S700 price is 6680 yuan / ton, the transaction situation is general
.

Warehouse receipt inventory: exchange warehouse receipts reported 409 lots, intraday - 20 lots
.
Main position: The top 20 long positions in the main contract are 142678 lots, +10341 lots, short positions are 124956 lots, +8475 lots, and the net position is 17722 lots, which is a net increase
.

Summary: Supply in Asia decreased slightly due to plant overhauls, but demand was also weaker
.
Domestically, a significant increase in imports in May is expected to increase supply pressure
in the market.
The maintenance of domestic production enterprises continued
.
Market supply is not expected to change
much.
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 continued to decline month-on-month, and Formosa Plastics' July quotations raised to support
PVC prices.
Operationally, investors can set a take profit in their hands and hold
them cautiously.