PVC rebound weak Prices continue to move lower

News: Affected by the epidemic prevention and control, the demand for PVC fell significantly in the first quarter of 2020
.
Data show that in the first quarter of 2020, the domestic downstream demand for PVC was 3.
9923 million tons, down 663,700 tons, or 14.
25%,
from 4.
656 million tons in 2019.

Spot market: PVC market in Qilu Chemical City is sideways, and the offer is stable
.
The price of calcium carbide method 5 type is 5480 yuan / ton, the price of ethylene Qilu S1000 is 5550 yuan / ton, and the price of S700 is 5650 yuan / ton.

Warehouse receipt inventory: exchange warehouse receipts report 0 lots, intraday -0 lots
.
Main positions: The top 20 long positions in the main contract are 107941 lots, +5386 lots, short positions are 97545 lots, +10329 lots, and net positions are 10396 lots, net long is reduced
.

Summary: The accelerated spread of the overseas epidemic has caused concern, and the weak trend of crude oil has also hit market confidence
to a certain extent.
And social inventories are still high, indicating that the market is still oversupplied
.
Formosa Plastics lowered PVC prices
for April.
Although most of the PVC downstream products enterprises have resumed work, the overall operating rate is still not high
.
These factors will suppress
the price of PVC.
Although the Fed opened the unlimited QE mode and released a 2 trillion economic stimulus plan, it failed to offset the panic in the market, and the market focused on the evolution of the overseas epidemic situation and when crude oil will stop falling and rebound
.
In terms of operation, it is recommended that investors set a take profit in their hands and hold
them cautiously.