PVC rebounds slightly and may have adjustment pressure in the short term

News: Qingdao Gulf Chemical plans to invest 672.
47 million yuan to reserve vacant land in the factory area to expand the 400,000 tons/year ethylene oxychloride chloride project, and conducted an environmental impact assessment
.
After the expansion, the total production capacity of the vinyl chloride plant of the whole plant reaches 800,000 tons/year
.
This project provides raw materials for the 400,000 tons/year PVC project that expands the plant, and the 400,000 tons/year PVC project is subject to a separate environmental impact assessment, which is the same construction project of this project
.

Spot market: The PVC atmosphere in Linyi market is calm, the downstream is affected by environmental protection inspection, terminal enterprises stop production more, demand is limited, trading is not good, and market prices fluctuate
slightly.
The delivery price of Linyi market including tax is 6750-6850 yuan / ton, and the price of the whole vehicle is slightly lower
.

Warehouse receipt inventory: the exchange warehouse receipt reported 2000 lots, which is in the historical median area, +0 lots
within the day.
Main positions: The top 20 long positions in the main contract are 110553 lots -988 lots, short positions are 106187 lots, -1287 lots, and net long positions are 4366 lots, +299 lots
.

Summary: Inner Mongolia's strengthening of safety production inspections may reduce the operating rate of production enterprises
.
The reduction of anti-dumping duty rates by the Indian Ministry of Finance is expected to increase the export volume of PVC, which supports PVC
.
However, the social inventory of PVC continued to rise month-on-month, and it is still in the off-season of PVC demand, and the operating rate of PVC downstream enterprises has also decreased significantly year-on-year, indicating that market demand is still low, and the Asian, European and American markets PVC has fallen and also suppressed domestic prices, and the light transaction in the spot market has put certain pressure
on the price of PVC.
In the later stage, with the completion of maintenance of most PVC production enterprises, the market supply is sufficient, while the orders of downstream enterprises are reduced, enterprises start work at low load, and at the same time the procurement of raw materials is more cautious, generally maintaining just purchases
.
Therefore, PVC may have adjustment pressure in the short term, and operationally, it is recommended that investors hold short orders in their hands with caution
.