PVC main narrow finishing will still maintain a range-bound pattern

News: the cost of calcium carbide method of domestic calcium carbide PVC enterprises decreased by 70 yuan / ton compared with last week, and the profit increased by 10 yuan / ton, the price of calcium carbide raw materials fell, and the price of PVC market rose slightly, improving the profit margin
of enterprises.
The cost of ethylene PVC enterprises decreased by 70 yuan / ton compared with last week, and the profit increased by 34 yuan / ton
from last week.

Domestic demand in the United States is expected to pick up in the first quarter, and three manufacturers will also carry out plant maintenance plans in the first quarter, Formosa Plastics plant in Baton Rouge, Louisiana at the end of January, Shintech plant in Freeport, Texas in February-March, and Axiall in Plaquemine, Louisiana in late March, and there is no confirmation of Shintech's maintenance duration
.

Spot market: Qilu Chemical City market continued to sort, calcium carbide supply is tight, calcium carbide 5 type quotation is 6820 yuan / ton (Xinfa excluding tax 6380 yuan / ton), ethylene Qilu price S700 quotation including tax 7060 yuan / ton, S1000 quotation 6900 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 136878 lots, +48 lots, short positions are 126708 lots, -2809 lots, and the net position is 10170 lots, a net long increase
.

Summary: Asian PVC market is sluggish, Taiwan lowered the December shipping quotation, PVC production enterprises operating rate reported 79.
45%, an increase of 3.
18% from last week, and this year China canceled the long-term implementation of the anti-dumping policy against the United States, Japan, South Korea and Taiwan, these factors are negative PVC
。 However, China and the United States are expected to cancel tariffs in stages, and PVC equipment maintenance unexpectedly increased in November, 5% higher than the same period last year, PVC social inventory fell 16% month-on-month, down 10% 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 maintain a range-bound pattern
in the future.
Operationally, it is recommended that investors wait and see for the time being
.