Downstream start delayed PVC main narrow finishing

News: PVC social inventory this week increased by 68.
42% month-on-month, down 8.
83% year-on-year, in East China, it increased by 73.
33% month-on-month and 13.
04% year-on-year, and South China increased by 50% month-on-month and decreased by 50.
41%
year-on-year.
East China stocks are 260,000 tons, South China 60,000 tons
.

As of February 7, the operating rate of PVC production enterprises was 70.
71%, down 3.
99% from last week and 14.
03% lower than the same period last year; The start of calcium carbide method decreased by 3.
61% from last week and 15.
77% lower than the same period last year; Ethylene process starts decreased by 5.
76% from last week and 5.
90%
lower than in the same period last year.

Spot market: Guangzhou PVC market quotation is very small, downstream production enterprises only a small part of the demand for resumption of work is limited
.
The market is mainly active inquiry, and the mainstream quotation of calcium carbide type 5 is 6450-6500 yuan / ton
.
Junzheng, Yili, Ordos, sea level 6450 yuan / ton; Dagu 1000 type 6750 yuan / ton, Dagu 800 type 6750 yuan / ton, Dagu 700 type 6750 yuan / ton, real negotiation
.

Warehouse receipt inventory: exchange warehouse receipts reported 4755 lots, intraday -0 lots
.
Main positions: The top 20 long positions in the main contract are 123542 lots, +6429 lots, short positions are 118067 lots, +3226 lots, and the net position is 5475 lots, which is a net long increase
.

Summary: After the holiday, the operating rate of PVC production enterprises fell back to 70.
71%, down 3.
99% from last week and 14.
03% lower than the same period last year; It shows that the production enterprises after the holiday have significantly reduced their burden
.
However, due to the impact of transportation restrictions and sluggish downstream demand, PVC social inventory increased by 68.
42% month-on-month and decreased by 8.
83%
year-on-year.
On the demand side, after the Lantern Festival, the resumption rate of downstream enterprises is still not high, and many regions have issued notices that all new and under construction sites need to be postponed
.
Therefore, most downstream enterprises have not yet set the start time, and the willingness to stock is weak
.
At present, it is in the off-season of PVC demand, downstream demand is insufficient, coupled with the need to delay the start of downstream construction, it is expected that the sluggish downstream demand will inhibit the price of
PVC.