PVC volatility is higher, and downstream demand has recovered

News: Taiwan Province Formosa Plastics June shipping PVC quotation: CFR India reported $730-740, CFR China reported $700, FOB Northeast Asia to Southeast Asia reported $670, FOB Northeast Asia to Vietnam reported $660, both up $40 from May
.
There is a volume discount
of $10/ton for products over 500 tons.

Spot market: Hebei market quotation is stable, merchant supply is not much, the current Hebei area 5 type material delivery price of 5770-5890 yuan / ton delivery, Inner Mongolia source of goods factory including tax self-raised price of 5570-5690 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts reported 1953 lots, +0 lots
within the day.
Main position: The top 20 long positions in the main contract are 143724 lots, -626 lots, short positions are 140645 lots, -667 lots, and the net position is 3079 lots, a net long increase
.

Summary: The overseas epidemic seems to be showing signs of easing, and vaccine research has also been positive, which has restored market confidence to a certain extent, and the voluntary reduction of production by major oil-producing countries has also supported the market
.
In the industrial chain, last week, although the operating rate of production enterprises increased, the social inventory of PVC still fell, indicating that downstream demand has recovered
.
In addition, the prices of raw materials calcium carbide, ethylene, vinyl chloride and dichloroethane have all stopped falling and rebounded, which is expected to reconstruct the cost support of PVC, and Formosa Plastics has raised the price of PVC to a certain extent
.
Operationally, investors can hold long positions with caution
.