PVC unilateral upside There is still room for growth

Affected by factors such as increased environmental protection, the operating rate of PVC enterprises will be greatly reduced, which will bring positive support
to PVC prices.
At present, it is less than a month before the delivery time of the futures market near-month contract, and the PVC price is expected to break through again in the short term, and it is expected that there is still room for price increases of about 500 yuan / ton (nearly 10%)
.

In late July, the central environmental protection inspection team settled in Inner Mongolia and Ningxia, and most of the local small calcium carbide furnace enterprises chose to stop production, resulting in a daily decline of more than 4,000 tons of calcium carbide production and a sharp decline of more than 5% in operating rate, which in turn affected the supply
of calcium carbide market in Northwest China.

At present, PVC manufacturers have a strong intention to raise prices
.
According to monitoring, the factory price of PVC manufacturers in Northwest China is about 5500 yuan / ton, while the cost price is about 4600 to 4700 yuan / ton, and the profit margin is about 800 to 900 yuan / ton, and the profit is greatly improved compared with the previous period
.

In the first five months, the area of new housing starts increased by 18.
3% year-on-year, ending two consecutive years of negative growth
.
As a late-cycle industry in the real estate industry, PVC is expected to release related demand in the second half of the year
.
In view of the fact that the progress of PVC capacity reduction on the supply side exceeds expectations, and the low inventory of middlemen, enterprises have a strong intention to raise prices, and PVC prices are expected to rebound
sharply in the second half of the year.