Downstream demand has recovered PVC volatility higher

News: South Korea's Hanwha Chemical plans to carry out an annual overhaul of PVC plants with a capacity of 305,000 tons and 130,000 tons in Yeosu and Ulsan for 10 days from May 25.
LG Chem's 610,000-ton-per-year plant was overhauled from early May to late June; Japan's Shin-etsu plant with an annual output of 550,000 tons will be overhauled from mid-May to June 23;

Spot market: the price of PVC market in Qilu Chemical City was raised, the price of calcium carbide 5 type material was about 6020 yuan / ton, the price of ethylene method S1000 was 6070 yuan / ton, and the price of S700 was 6220 yuan / ton, and the transaction situation was general
.

Warehouse receipt inventory: exchange warehouse receipts reported 1953 lots, +0 lots
within the day.
Main positions: The top 20 long positions in the main contract are 147619 lots, +3895 lots, short positions are 137245 lots, -3400 lots, and the net position is 10374 lots, which is a net long increase
.

Summary: The overseas epidemic seems to be showing signs of easing, and vaccine research has also been positive, which has restored market confidence to a certain extent, and the voluntary reduction of production by major oil-producing countries has also supported the market
.
In the industrial chain, last week, although the operating rate of production enterprises increased, the social inventory of PVC still fell, indicating that downstream demand has recovered
.
In addition, the prices of raw materials calcium carbide, ethylene, vinyl chloride and dichloroethane have stopped falling and rebounded, which is expected to reconstruct the cost support of PVC, and factors such as the overhaul of multiple sets of Asian equipment in late May and the increase in the price of Formosa Plastics have formed a certain support
for the price of PVC.
Operationally, investors can hold long positions with caution
.