Fundamentals remain weak PVC futures prices are running weakly

Futures market: as of 10.
27, the main force of PVC closed at 5735 yuan / ton, down 0.
33% from the previous month; Top 20 main long positions: 490149 (-7621), short positions: 558564 (-2787), net short positions: 68715 (+3552).

Spot and enterprise dynamics: as of 10.
27, East China (calcium carbide method) quotation: 6010 yuan / ton (0); South China (calcium carbide method) quotation: 6090 yuan / ton (0); Shandong Xinfa PVC started normally, the shipment was general, the price was stable, and the 5 type factory reported 6000 yuan / ton; Ningxia Yinglite 120,000 tons of 5-type PVC type equipment stopped on October 27, the 3-type started normally, there was a certain inventory, the intraday quotation was lowered, the factory quotation of type 5 calcium carbide acceptance was 5800 yuan / ton, and the factory quotation of type 3 calcium carbide acceptance was 6000 yuan / ton, part of the negotiation
.

Basis: As of 10.
27, South China basis +19; East China basis +19; basis slightly strengthened
.
Upstream raw materials: as of 10.
27, the quotation of North China calcium carbide was 4300 yuan / ton, which was unchanged from the previous day's price; Shaanxi Lanchar quoted 1576 yuan / ton, no change
from the previous day's price.

PVC fundamentals remain weak, with futures prices further lower
due to high inventories and low demand.
In the short term, we may pay attention to the shrinkage impact of the narrowing of chlor-alkali profits on supply; However, in the medium and long term, the current supply and demand expectations are relatively under pressure, and if the accumulation of inventory accelerates, PVC valuation does not rule out the possibility
of further exploration.