PVC shrinkage increased position, and the futures price rose slightly

News: 1.
Last week (October 19-October 25), the outbound volume of 24 domestic PVC enterprises reached 188,700 tons, down 12.
27% from the previous cycle, and the weekly output of 24 enterprises reached 182,400 tons, down 10.
28%
from the previous cycle.
The main reason is that some enterprises have been overhauled and the operating rate has declined
.
2.
Longzhong data shows that PVC imports in September 2020 were 78,500 tons, down 34.
61% month-on-month, an increase of 108.
14% in the same period, and a total of 810,000 tons from January to September, an increase of 63%
over the same period last year.
PVC exports in September were 32,790 tons, an increase of 9.
3% month-on-month and a year-on-year decrease of 19.
24%; From January to September, the cumulative export was 340,000 tons, down 16%
from the same period last year.

Market quotation: the mainstream price of SG-5 in Changzhou market in East China is 7020 yuan / ton, +70
.

Warehouse receipt inventory: 1719 warehouse receipts, -40 sheets
.

Main positions: Top 20 long positions 150761, +7667, short positions 155672, +8633
.
Increased
headroom.

Summary: After entering the middle and late October, PVC has a new device and a production plan, and it is expected that the supply will gradually increase in the later period to form a certain suppression
of the price.
However, due to the maintenance of overseas equipment, the price of VCM in Europe and the United States has risen sharply, and the price trend of overseas PVC has also remained firm, and Formosa Plastics' increase in PVC prices in November has also supported the price, in addition, the domestic PVC social inventory has decreased month-on-month this week, these factors have supported
the price.