Social inventories continue to fall and PVC probes lower and higher

News: Domestic PVC imports in January and June were about 172,900 tons, up 80,700 tons from May, an increase of 87.
47%, and a significant increase of 110,100 tons, an increase of 175.
38%,
compared with the same period last year.
From January to June 2020, China imported a total of 452,600 tons of PVC, an increase of 106,100 tons or 30.
63% year-on-year; In June, China's exports of PVC were 28,100 tons, up 02,000 tons, or 7.
65%; Compared with the same period last year, it decreased by 08,300 tons, or 22.
93%.

From January to June 2020, China exported a total of 246,400 tons of PVC, down 27,900 tons or 10.
18%
from the same period last year.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 6500 yuan / ton, +0
.
Warehouse receipt inventory: 338 warehouse receipts, +0
.

Main positions: Top 20 long positions 103877, -397, short positions 111902, +654
.
Increased
headroom.

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, but imports rose sharply in June and domestic supply increased
.
In terms of demand, in June, the apparent demand for PVC continued to rise year-on-year, and was higher than the same period last year, indicating that downstream rigid demand is still there
.
Social inventories continued to fall, indicating that PVC downstream demand recovered well, supporting the price of PVC
.
The future market focuses on whether the pressure on the 6580 line can be broken
.
Operationally, it is recommended that investors trade in the range of 6420-6580
.