PVC main volatility fell slightly from the previous session

News: In 2019, the average ex-factory price of domestic calcium carbide was 2760 yuan, down 104 yuan year-on-year, a decrease of 3.
63%, because about 81% of domestic calcium carbide is used for PVC, and in 2019, the safety and environmental protection of the PVC industry will be strengthened, and the demand will decrease
.
As a result, calcium carbide prices fell
in synchronization.
The production capacity of PVC in 2020 will still increase significantly, but the capacity growth of calcium carbide is limited, so it is expected that the situation of calcium carbide overcapacity in 2020 is expected to improve
.

The latest quotation of Formosa PVC in Taiwan Province in February was raised by $20/ton from January to $890/ton CIF India, CIF China at $850/ton China's main port, $860/ton CFR South China port / Southeast Asia, FOB Taiwan at $830/ton
.
The recovery of PVC prices in Asia has formed some support
for spots.

Spot market: Hebei market reduced by 30-40 yuan / ton, the current price of 5 type materials including tax is 6580-6640 yuan / ton, Inner Mongolia source of goods including tax self-raised price 6370-6430 yuan / ton, excluding tax self-raised price 5980-6020 yuan / ton
.
Hebei market reduced by 30-40 yuan / ton, the current 5 type material price including tax 6580-6640 yuan / ton is delivered, Inner Mongolia source of goods including tax self-raised price 6370-6430 yuan / ton, excluding tax self-raised price 5980-6020 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 164479 lots, -3011 lots, short positions are 167617 lots, -4816 lots, net positions are -3138 lots, net space is reduced
.

Summary: Crude oil rushed back down, and market worries were slightly reduced
.
Fundamentally, the operating rate of PVC production enterprises this week was 82.
87%, an increase of 1.
92% from last week and 1.
40% year-on-year; PVC production enterprises maintenance loss was 27,090 tons, down 0.
82 from the previous month, and the maintenance loss in December was 140,000 tons, down 31.
41%
from November.
The operating rate of production enterprises has increased, and the spot supply of PVC is sufficient
.
PVC social inventory increased by 39.
23% month-on-month last week and decreased by 12.
31% year-on-year, indicating insufficient
market demand.
Downstream maintenance just need to purchase
.
Far futures source procurement is not active, and the psychology of high price resistance is enhanced
.
The domestic calcium carbide market stopped falling and stabilized, the market supply was in the stage of gradual consumption, and the downstream purchasing manufacturers increased their demand with the end of maintenance and the increase of load
.
These factors support the price of PVC
.
At present, PVC fundamentals are weak, but it remains to be seen
whether the situation in the Middle East will ferment further.
Operationally, it is recommended that investors trade in
ranges.