Demand in the later stage of the market may reduce PVC futures price volatility lower

News: 1.
Formosa Plastics lifted force majeure on December 9 and resumed some production capacity, and is expected to provide a small amount of exports
in January.
The vinyl chloride and PVC of Westlake Chemical affected by the hurricane have not been lifted as of the 16th
.
In December, the export price of PVC in the United States rose sharply by $150 to $1450/ton, and the export quantity was limited, and the main source of goods was still mainly to supply the US domestic market
.
Formosa Plastics quotations rose 4 cents / pound in January, in Asia, the CFR Chinese market held steady at $1160/ton, CFR Southeast Asia edged up $1210/ton, and CFR India was sharply bullish at $1460/ton
.
2.
Liancheng's production load will be increased to 900 tons/day, the company is expected to reduce production by 10,000 tons in December, Qingsong Jianhua will increase the plant load to 6.
5% on the 15th, Suzhou Huasu will stop on December 9, and Hanwha will stop for maintenance
from December 14 to 23.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 8520 yuan / ton, -230
.
Warehouse receipt inventory: 2201 warehouse receipts, +926 stocks
.

Main positions: Top 20 long positions 173916, +15320, short positions 170652, +13684
.
Net increase
.

Summary: PVC prices in Asia remain firm, and the strong trend of domestic calcium carbide prices supports PVC prices
.
However, after entering December, PVC inventories have accumulated for two consecutive weeks, and the supply-demand relationship may change
in the later period as the weather turns cold, downstream enterprises stop work and the 1.
2 million tons of new production and resumed production capacity gradually increase the load.
At present, PVC prices are at a historical high, resulting in obvious downstream losses, and with the end of old orders, new orders reduce orders, or even do not accept orders, resulting in later demand or will decrease
.
In anticipation of increased supply and reduced demand, PVC is expected to have certain pullback requirements
.