PVC shrinkage and position reduction, the futures price is sorted out at a high level

News: 1.
According to Longzhong data, the domestic PVC output in July 2020 was 1.
7836 million tons, an increase of 8.
68% from June and 6.
70% from last year; The cumulative output from January to July was 11.
7375 million tons, an increase of 2.
88%
over last year.
2.
In June 2020, the apparent consumption of domestic PVC was 1.
786 million tons, an increase of 0.
76% month-on-month and 9.
73% year-on-year; From January to June, the cumulative amount was 10.
147 million tons, an increase of 3.
38%
over last year.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 6620 yuan / ton, +100
.

Warehouse receipt inventory: 427 warehouse receipts, +39
.
Main positions: Top 20 long positions 86619, -7942; short positions 95504, -8309
.
Reduced
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
.
In terms of operation, it is recommended that investors can set a take profit in their hands and hold
them cautiously.