The market operating rate is still not high, and PVC has fallen slightly

News: Asian EDC prices fell $30/mt from last week to $270/mtCFR Far East and Southeast Asia, with weak market demand
.
Considering upstream ethylene prices, EDC prices are expected to remain low
.
Vinyl chloride Asia prices fell $100/ton this week, CFR Northeast Asia at $610/ton, CFR Southeast Asia at $650/ton, affected by the downward and downstream prices, this week in April PVC a producer quoted $800/ton CFR
.

Spot market: Qilu Chemical City PVC market weak downward, offer down
.
The price of calcium carbide type 5 is 5830 yuan / ton, the price of ethylene Qilu S1000 is 5850 yuan / ton, and the price of S700 is 5950 yuan / ton.

Warehouse receipt inventory: exchange warehouse receipt reported 3940 lots, intraday -70 lots
.
Main position: The top 20 long positions in the main contract are 89667 lots, +2128 lots, short positions are 75444 lots, +1796 lots, and the net position is 14223 lots, a net increase
.

Summary: The accelerated spread of the overseas epidemic has caused concern, and the weak trend of crude oil has also hit market confidence
to a certain extent.
And the operating rate of PVC production enterprises has rebounded, and social inventory is still high, indicating that the market is still oversupplied
.
Formosa Plastics' reduction in PVC prices in April also suppressed
domestic prices to a certain extent.
Although most of the PVC downstream products enterprises have resumed work, the overall operating rate is still not high
.
These factors will suppress
the price of PVC.
However, the Fed's opening of the unlimited QE mode has boosted market confidence to a certain extent, and it is not ruled out that there will be follow-up stimulus policies in the United States that also give the market hope, and the market will focus on whether crude oil can stop falling and rebound
.
In terms of operation, it is recommended that investors can take advantage of the low and settle their pockets in their
hands.