PVC rushes back down to focus on whether the upper pressure can be broken

News: 1.
In June 2020, the apparent consumption of domestic PVC was 1.
786 million tons, an increase of 0.
76% from the previous month and an increase of 9.
73% over the same period last year; From January to June, the cumulative amount was 10.
147 million tons, an increase of 3.
38%
over last year.
2.
The total production capacity of domestic resumption and commissioning in the third quarter is 1.
19 million tons
.
The enterprises that were overhauled in September included Taiwan Formosa Plastics and Tianjin LG, with a maintenance capacity of 800,000 tons and a maintenance day of 7-15 days
.
From the supply side, the coexistence of overhaul and new additions has weakened the impact
of production to a certain extent.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 6500 yuan / ton, +0
.
Warehouse receipt inventory: 338 warehouse receipts, +0
.

Main positions: Top 20 long positions 101704, -2137, short positions 112362, +460
.
Increased
headroom.

Summary: Asian demand is basically stable, and Formosa Plastics raised its quotation in August to support
PVC.
Domestically, the maintenance of domestic production enterprises continued
.
Market supply is expected to decrease, but imports rose sharply in June and domestic supply increased
.
In terms of demand, in June, the apparent demand for PVC continued to rise year-on-year, and was higher than the same period last year, indicating that downstream rigid demand is still there
.
Social inventories continued to fall, indicating that PVC downstream demand recovered well, supporting the price of PVC
.
The future market focuses on whether the pressure on the 6580 line can be broken
.
Operationally, it is recommended that investors trade in the range of 6420-6580
.