PVC sideways rebound is expected to continue

News: Since the implementation of the "263" special operation in October 2016, Jiangsu Province has investigated a total of 7,372 chemical enterprises
.
In May 2017, Jiangsu issued the province's petrochemical industry "four batches" special action target task, clarifying that by the end of 2018, it plans to close 2,077 enterprises; In 2020, 272 enterprises were transferred, 696 enterprises were upgraded, and 4,327 enterprises
were restructured.

Upstream prices: Naphtha CF Japan reported $579.
25 / ton, down 0.
6%; FOB Singapore was trading at $63.
8 a barrel, down 0.
61 percent
.
ethylene CFR Northeast Asia 1345, 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 China was flat at $960, CFR Southeast Asia was flat at $960; North China calcium carbide law reported 6460 yuan / ton, up 100 yuan; ethylene law reported 6700 yuan / ton, up 100 yuan; East China calcium carbide method reported 6550 yuan / ton, up 70 yuan, ethylene method 6850 yuan / ton, up 100 yuan; South China calcium carbide method 6550, flat, ethylene method 6880 yuan, up 80 yuan
.

The PVC1809 contract traded sideways and closed barely above the 60-day EMA, indicating an advantage for bulls
.
Fundamentally, high inventories, environmental protection inspections and other factors have formed a certain suppression
of the futures price.
However, crude oil rebounded, and the current improvement in downstream demand may support futures prices
.

Technically, the MACD low green bar narrowed, and the KDJ indicator fluctuated higher, indicating that the rally is still expected to continue
.
Obviously concerned about whether the pressure on the 6700 line can be broken
.
In terms of operation, investors can reduce their long positions at high prices, and take them back
after they return.