PVC shock lower may have adjustment pressure in the short term

In terms of news, vinyl chloride imports in June 2019 were 67,960 tons, of which Japan imported 35,500 tons, Taiwan imported 22,800 tons, the United States imported 06,600 tons, and South Korea imported 3,000 tons
.
General trade is 54,400 tons, of which Zhejiang imports 32,800 tons, Jiangsu imports 17,900 tons, and Guangdong imports 12,000 tons
.
In June, vinyl chloride exports were 19,500 tons, mainly exported to Vietnam 13,200 tons and Pakistan 03,300 tons
.

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 111541 lots +2958 lots, short positions are 107474 lots, +1024 lots, and net long positions are 4067 lots, +1934 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
.