PVC rushed back down, and downstream demand recovery was insufficient

News: India announced that the national lockdown will be extended until May 3
.
As India is the world's largest export destination for PVC, importing more than 2 million tons
per year.
The blockade is expected to affect trade in at least 500,000 tonnes of its exports
.
At present, China's PVC imports have no anti-dumping policy, and there is no additional policy, and the price of calcium carbide in China's domestic market is 5500 yuan / ton, about CFR China 695 US dollars / ton), much higher than the price of the United States, Japan, South Korea, Taiwan to the Chinese market (590--620 US dollars), it is expected that most of these goods will be transferred to the Chinese market
.

Spot market: Hebei market quotation is stable, the current Inner Mongolia 5 type material including tax price 5480-5550 yuan / ton delivery, Inner Mongolia source of goods factory tax including tax self-raised price 5350-5400 yuan / ton, excluding tax self-raised price 5060-5100 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipt reported 162 lots, +0 lots
within the day.
Main position: The top 20 long positions in the main contract are 137047 lots, -7166 lots, short positions are 138036 lots, -7650 lots, net positions are -989 lots, net space is reduced
.

Summary: The successful conclusion of a joint production cut agreement at the OPEC+ meeting boosted market confidence
.
However, although PVC social inventories fell slightly month-on-month, they were still much higher than the same period last year, indicating that downstream demand recovery was insufficient
.
Formosa Plastics lowered the price of PVC in May, in addition, due to the extension of the lockdown time in India, perhaps Asian goods will accelerate the flow to China, increasing the domestic supply pressure, these factors have formed a certain suppression
of the price.
In operation, investors can settle more orders in batches and drop their bags
.