PVC main force strong finishing long orders are held cautiously

News: In October 2019, China produced a total of 1,652,300 tons of PVC, an increase of 12,600 tons, or 0.
77%, and a year-on-year increase of 58,300 tons, an increase of 3.
66%.

From January to October 2019, China produced a total of 16.
0092 million tons of PVC, an increase of 164,500 tons year-on-year, an increase of 1.
038%.

Spot market: PVC in Linyi market has been adjusted in a narrow range, and the market atmosphere is general
.
Type 5 material including tax reported 6830-6900 yuan / ton to be delivered, the price of the whole vehicle is slightly lower
.
The supply of calcium carbide type 5 type in the market of Qilu Chemical City is tight, the price of calcium carbide type 5 is 6900 yuan / ton (Xinfa does not include tax 6450 yuan / ton), the price of ethylene material Qilu S700 price includes tax 7080 yuan / ton, S1000 quotation is 6920 yuan / ton
.

Warehouse receipt inventory: Exchange warehouse receipts reported 3 lots, intraday -0 lots, in the historical low area
.
Main position: The top 20 long positions in the main contract are 140401 lots, -1530 lots, short positions are 136762 lots, -238 lots, and the net position is 3639 lots, net long is reduced
.

Summary: On the supply side: the autumn centralized maintenance of upstream production enterprises has basically ended, and the output of increased production by the end of this year may reach 710,000 tons, and the supply will show a gradually rising pattern; Demand: Downstream terminal enterprises entered the off-season of previous years, and with the drop in temperature, downstream construction was restricted and demand was flat
.
Raw materials: the domestic calcium carbide market price has been adjusted down regionally
.
The increase in production has suppressed prices, the Asian PVC market is sluggish, and Taiwan's downward revision of December sailing quotations has also put some pressure
on market psychology.
However, China and the United States are expected to cancel tariffs in phases, and PVC equipment maintenance unexpectedly increased in mid-November, PVC social inventory decreased by 21.
43% month-on-month, down 30.
77% year-on-year, the speed of destocking has accelerated to boost market confidence, in addition, PVC downstream products imports decreased, exports increased also supported prices
.
It is expected that PVC will have certain rebound requirements
in the future.
In terms of operation, it is recommended that investors can set up a profit in their hands and hold
them cautiously.