PVC shrinkage and position reduction, futures price shock fall

News: 1.
As of the week of June 13, the domestic PVC social inventory was 154,800 tons, down 4.
8% month-on-month and 48.
05% year-on-year; Among them, East China was 109,800 tons, down 6.
63% month-on-month and 48.
69% year-on-year; South China was 45,000 tons, flat month-on-month, down 46.
43%
year-on-year.
2, Taiwan's major production enterprises July PVC pre-sale price is expected to be announced recently, the market generally believes that the reduction range is more than 100 US dollars / ton Compared with June, the current Southeast Asian market demand is weak, some sources of goods began to pay attention to the mainland market, CFR China's main port spot price in 1270 US dollars / ton can be negotiated, ASEAN ten countries source of goods
duty-free.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 9200 yuan / ton, -50
.

Warehouse receipt inventory: 5701 warehouse receipts, -140 sheets
.
Main positions: Top 20 long positions 281570, +2595, short positions 234333, +6368
.
Net excess decrease
.

Summary: PVC operating rates continued to rise slightly month-on-month last week, and market supply increased
.
Domestic PVC social inventories have decreased year-on-year, indicating that there is not much
pressure on suppliers at present.
The operating rate of downstream product enterprises has not changed much, only a few enterprises have a small decline, and the power cuts and the epidemic in South China still have an impact
on the start of local product enterprises such as Foshan and Dongguan.
Some enterprises said that the current sales of factory products are more difficult, domestic and foreign orders are under pressure, and some enterprises have no choice but to reduce the burden to ensure the balance
of product inventory.
The V2109 contract fluctuated lower during the day, indicating that there is still some pressure above, and it is expected to maintain a range-bound pattern
in the later period.