Social stocks are still high PVC narrow finishing

News: Last week, the operating rate of domestic PVC enterprises fell by 5.
64% to 71.
1%, and the expected decline in upstream starts decreased; The latest PVC industry inventory data shows that upstream + social inventory increased by 8.
6% from the previous week, of which upstream inventory increased by 17% month-on-month and social inventory decreased by 3%
month-on-month.
Some of the sources of goods of upstream enterprises have shifted to the market, and social inventories are still high
.

Spot market: Qilu Chemical City PVC market sideways, intraday offer increased, calcium carbide method 5 type material price is about 5500 yuan / ton, ethylene method S1000 price is 5550 yuan / ton, S700 price is 5650 yuan / ton, the transaction situation is acceptable
.

Warehouse receipt inventory: exchange warehouse receipt reported 162 lots, +60 lots
within the day.
Main position: The top 20 long positions in the main contract are 133692 lots, +1108 lots, short positions are 124730 lots, -3062 lots, and net positions are 8962 lots, net long increases
.

Summary: Social inventories are still high, indicating that the market is still oversupplied
.
Formosa Plastics lowered PVC prices in April, and these factors suppressed
prices to a certain extent.
The postponement of the OPEC+ meeting may cause market concerns about whether oil-producing countries can reach a joint production reduction agreement, and the absolute value of domestic two barrels of oil and petrochemical inventories is still high, indicating that downstream demand has not fully recovered, forming a certain pressure
on prices.
However, domestic petrochemical enterprises have a strong willingness to raise prices, which has formed a certain support
for prices.
Whether the key OPEC+ meeting in the future market can reach an agreement on the production reduction agreement, operationally, investors can set a take profit in their hands and hold
it cautiously.