Social inventories accelerated to fall PVC prices fluctuated and rebounded

News: The average weekly operating rate of PVC production enterprises in this cycle was 75.
50%, down 2.
42% month-on-month and 1.
3%
year-on-year.
Among them, the calcium carbide method started 75.
04% this week, down 2.
94% month-on-month and 2.
15% year-on-year; The ethylene process was at 77.
66%, down 0.
03% month-on-month and increasing by 2.
69%
year-on-year.

This week's PVC social inventory increased by 2.
76% month-on-month, down 11.
82% year-on-year, in terms of East China, it increased by 0.
98% month-on-month and decreased by 11.
16% year-on-year, and South China increased by 10.
20% month-on-month and decreased by 14.
29%
year-on-year.
East China stocks are 207,000 tons, South China 54,000 tons
.

Spot market: the PVC market trend of Qilu Chemical City has improved, traders have raised the offer, the price of calcium carbide 5 type material is about 6570 yuan / ton, the price of ethylene material S1000 is 6890 yuan / ton, the price of S700 is 6990 yuan / ton, and the transaction situation is general
.

Warehouse receipt inventory: exchange warehouse receipts reported 388 lots, intraday -41 lots
.
Main position: The top 20 long positions in the main contract are 119279 lots, +8474 lots, short positions are 130453 lots, +6328 lots, and the net position is -11174 lots, with a decrease
in net shorting.

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
.
In terms of demand, in May, the apparent demand for PVC increased year-on-year and was higher than the same period last year, indicating that downstream rigid demand is still there
.
Social inventories have shown signs of accelerating their decline, and have now returned to below the level of the same period last year, indicating that PVC downstream demand has recovered well, supporting the price of PVC
.
However, demand in areas affected by flooding in the near future will weaken
.
Operationally, it is advisable
for investors to wait and see for the time being.