The main force of PVC fell slightly, and the market supply pressure was not large

News: Taiwan's Formosa Plastics PVC quotation remained firm in January, at $870/mt CIF India (Nhava Sheva), CFR 840 USD/mt China/Southeast Asia, FOB Taiwan at $810/ton
.
Both rose $10 in December
.

In October 2019, China imported 45,400 tons of PVC, a year-on-year decrease of 26.
77%, and exported 37,900 tons of PVC, an increase of 45.
77%
year-on-year.

Spot market: The mainstream price of Type 5 in Guangzhou PVC market is temporarily stable at 7250-7380 yuan / ton, and some pre-sales will be until the end of the month
.
Zhongtai 7380, Tianye 7340, ethylene Dagu 1000 size 7380, Dagu 700 type newspaper 7330
.
Shantou area salt lake 7350, Tianhu 7400 yuan / ton, real negotiation
.

Warehouse receipt inventory: exchange warehouse receipts report 0 lots, intraday -0 lots
.
Main position: The top 20 long positions in the main contract are 152694 lots, -1047 lots, short positions are 139868 lots, -2672 lots, and the net position is 12826 lots, a net long increase
.

Affected by environmental protection, the start of upstream production enterprises decreased slightly; Due to the pre-sale of more deliveries in the market, the spot volume of various merchants remained tight; Downstream maintenance just need to purchase
.
Far futures source procurement is not active, and the psychology of high price resistance is enhanced
.
PVC prices in the Asian market remained stable, CFR China at $830/ton, CFR Southeast Asia at $825/ton, CFR India at $855/ton; Some Asian producers are eager to
raise their January quotes.
The operating rate of PVC production enterprises last week was 78.
06%, down 1.
42% from last week and 3.
63% lower than last year; Among them, the calcium carbide method was 78.
75%, down 2.
46% month-on-month and 1.
85% lower than the same period last year, and the ethylene method was 81.
04%, an increase of 3.
37% month-on-month and 12.
41%
lower than the same period last year.
This week, the second phase of Ordos 400,000 tons of PVC plant is scheduled to be put into operation, and the supply is expected to continue to increase
.

PVC industry inventories continued to decrease by 4.
64% last week, which is also far lower than the year-on-year level, indicating that there is not much
supply pressure in the market at present.
In addition, last week, the domestic calcium carbide market rose, the market supply is in the stage of gradual consumption, and downstream purchasing manufacturers have increased their demand with the end of maintenance and load increase
.
Formosa Plastics' higher January quotation also supported
prices.
Moreover, there was a serious smog weather in the north of China, and orange warnings for heavy pollution weather were issued in many places, and production enterprises successively reduced production
.
In terms of operation, it is recommended that investors can settle their hands on high orders and drop their bags
.