PVC rushed back down and the trading volume shrank significantly

News: Domestic calcium carbide production in May was 2.
035 million tons, down 3.
1% year-on-year, and the cumulative output from January to May was 10.
5 million tons, up 0.
7% year-on-year; In terms of regions, the largest decline in production capacity was in Inner Mongolia and Gansu, which decreased by 7.
2% and 30.
7%
respectively.
The obvious decline in production indicates that the impact of "environmental review" is still fermenting
.

Upstream price: naphtha CF Japan reported $642 / ton, up 1.
52%; FOB Singapore was trading at $70.
3 a barrel, up 1.
44 percent
.
ethylene CFR Northeast Asia 1375 US dollars / ton, flat; CFR Southeast Asia was flat at $1260/mt
.
Domestic calcium carbide prices were stable, with East China reporting 3370 yuan, flat, and Northwest reporting 3060 yuan, flat
.

Spot market: CFR Southeast Asia was flat at $940; CFR China was flat at $935; North China calcium carbide law reported 6850 yuan / ton, flat; ethylene law reported 6920 yuan / ton, up 20 yuan; East China calcium carbide method reported 6900 yuan / ton, up 50 yuan, ethylene method 7050, flat; South China calcium carbide method 6900 yuan, flat, ethylene method 7150 yuan, flat
.

The PVC1809 contract soared and fell, and the trading volume shrank
significantly.
Fundamentally, the central bank targeted RRR reduction, the peak of device maintenance, the continuous decline of social inventory, and the stationing of environmental protection teams to inspect formed a certain support for futures prices, but the Sino-US trade war escalated, and the spot price fell to suppress
prices.

Technical indicators, MACD green bar flat, KDJ has signs of low golden cross, short-term technical pattern divergence
.
Operationally, it is recommended that investors wait and see
.