PVC volatility declined, the market maintained just need to purchase

News: PVC social inventory last week decreased by 2.
68% month-on-month and 3.
65% year-on-year, in terms of East China, it decreased by 3.
27% month-on-month and 8.
41% year-on-year, and South China decreased by 1.
19% month-on-month and increased by 10.
67%
year-on-year.
East China stocks are 207,000 tons, South China 83,000 tons
.

The operating rate of PVC production enterprises this week was 71.
55%, an increase of 0.
21% month-on-month, and a year-on-year decrease of 6.
79%.

Among them, the calcium carbide method started at 71.
79%, an increase of 1.
59% month-on-month, and a year-on-year decrease of 7.
85%; The ethylene process started at 70.
44%, down 6.
20% from last week and 1.
83%
year-on-year.

Spot market: Hebei market quotation reduced by 30-50 yuan / ton, the current Hebei area 5 material delivery price 6210-6280 yuan / ton delivery, Inner Mongolia source of goods factory tax including tax self-raised price 6040-6080 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 601 lots, intraday -0 lots
.
Main positions: The top 20 long positions in the main contract are 138311 lots, -7 lots, short positions are 122238 lots, -863 lots, and the net position is 16073 lots, which is a net increase
.

Summary: The easing of the overseas epidemic has boosted market confidence, major oil producers have extended the production reduction period, and EIA has raised crude oil demand to support
the market.
Fundamentally, crude oil fluctuated at a high level, and the price of vinyl chloride in Asia rebounded
.
The maintenance of domestic production enterprises continued, and the pre-sales situation was better
.
On the demand side, in April, the domestic real estate market rebounded slightly, while the infrastructure industry also boosted the demand for
PVC to a certain extent.
The decline in PVC operating rate, the continued decline in social inventory month-on-month, and Formosa Plastics' increase in July quotations all supported
the price of PVC.
However, downstream enterprises are more cautious about PVC procurement and maintain the focus on just-in-demand procurement
.
The future market pays attention to whether the support of the lower moving average is strong, and operationally, it is recommended to trade in the short term
.
Wait for a directional breakout
.