PVC shrinkage increases position, and the futures price fluctuates in a narrow range

News: In January and August, the maintenance capacity of domestic PVC production enterprises decreased by 21% compared with July, the average operating rate of enterprises increased by 1.
8% month-on-month, and the market supply increased slightly; The operating rate of downstream terminal products enterprises increased slightly from July, driving PVC production enterprises and social inventories to decrease by 2.
7%
compared with July.
2.
In July 2020, the domestic PVC output was 1.
7836 million tons, an increase of 8.
68% from June and 6.
70% year-on-year; The cumulative output from January to July was 11.
7375 million tons, an increase of 2.
88%
over last year.
Production in August is expected to be around
1.
8 million tonnes.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 6630 yuan / ton, +0
.

Warehouse receipt inventory: 427 warehouse receipts, +0
.
Main positions: the top 20 long positions 126475, +1585, short positions 137917, -1326
.
Reduced
headroom.

Summary: The increase in PVC prices in Asia has supported the domestic market
.
The upstream leading manufacturers Wuhai Chemical, Inner Mongolia Junzheng, Shaanxi Beiyuan, and Xinjiang Zhongtai plan maintenance in August, and it is expected that the market supply will be reduced, and the pressure on the supply side will not be large
.
On the demand side, the decline in PVC social inventory slowed down, but it was still lower than the same period last year, indicating that PVC downstream demand was still good, which supported 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.