PVC prices are still supported and prices are expected to be volatile

Futures market: as of 12.
29, the main force of PVC closed at 6357 yuan / ton (-49); Top 20 main long positions: 364872 (-9956) Short positions: 437847 (+6520); Net short position: 72975 (+16476).

Spot: as of 12.
29 East China (calcium carbide method) quotation: 6160 yuan / ton (-40); South China (calcium carbide method) quotation: 6240 yuan / ton (-25).

Blue charcoal: as of 12.
29 Shaanxi 1366 yuan / ton (0).

calcium carbide: as of 12.
29 North China 4100 yuan / ton (0).

Viewpoint: Due to the impact of cooling weather, demand in the north has basically stagnated, and some downstream parts of East China and South China have taken goods at a low level but the overall transaction is light, and the fundamental performance is weak
.
However, the support expected by the market remained, resulting in spot price quotations remaining firm
.
Fundamentals have deteriorated
month-on-month due to increased supply and weaker demand recently.
Due to the slight improvement in production profits, the calcium carbide operating rate showed a continuous upward trend, and the supply increased
month-on-month.
On the demand side, due to the proximity of the Spring Festival holiday in China, some downstream factories have been on holiday, and demand in the north is basically stagnant, and the stocking of East China and South China downstream has not been positive
.
The pressure of inventory accumulation has been highlighted, but the improvement of macro expectations still supports PVC prices, and price volatility is expected
.