PVC main force rebounded sharply Downstream demand has recovered

News: PVC social inventory last week decreased by 0.
66% month-on-month and 37.
6% year-on-year, in terms of East China, it decreased by 5.
97% month-on-month and 30.
77% year-on-year, and South China increased by 38.
89% month-on-month and decreased by 58.
33%
year-on-year.
East China stocks are 63,000 tons, South China 12,500 tons
.
PVC social inventory continued to fall, forming a certain support
for prices.

Spot market: PVC market in Qilu Chemical City market weakened
slightly.
The price of calcium carbide type 5 is 7030 yuan / ton (Xinfa does not include tax 6580 yuan / ton), the price of ethylene Qilu S700 includes tax 7220 yuan / ton, and the price of S1000 is 7040 yuan / ton
.

Warehouse receipt inventory: exchange warehouse receipts report 0 lots, intraday -0 lots
.
Main position: The top 20 long positions in the main contract are 113056 lots, +12249 lots, short positions are 107152 lots, +1571 lots, and the net position is 5904 lots, net short to net long
.

On the supply side: the autumn centralized maintenance of upstream production enterprises has basically ended, but due to environmental protection factors, some Xinjiang enterprises have reduced production, and the market supply is basically balanced; On the demand side: real estate data
surprises.
Total investment in real estate development and sales figures for new housing starts increased
significantly from the previous year.
Although the sales area is still lower than the same period last year, it also has a more significant increase
from the previous quarter.

Raw materials: the domestic calcium carbide market price has been adjusted down regionally
.
In addition, Taiwan's downward revision of December sailing schedule quotations has put some pressure
on market psychology.
However, China and the United States are expected to cancel tariffs in phases, and the operating rate of PVC production equipment continues to rise this week, but the social inventory of PVC has decreased significantly month-on-month and year-on-year, indicating that downstream demand has recovered and the speed of destocking has accelerated
.
The decrease in imports of PVC downstream products and the increase in exports also supported prices
.
It is expected that PVC in the future market is likely to maintain a range-bound pattern
.
Operationally, it is recommended that investors wait and see for the time being
.