Social inventory remains high, and the main force of PVC rushes back down

News: PVC social inventory increased by 7.
36% month-on-month last week, 10.
66% year-on-year, in East China, it increased by 4.
59% month-on-month and 11.
93% year-on-year, and South China increased by 13.
85% month-on-month and 8.
03%
year-on-year.
East China stocks are 319,000 tons, South China 148,000 tons
.

In 2019, the domestic apparent consumption of PVC reached 19.
996 million tons, a year-on-year increase of 4.
32%, and the downstream consumption of PVC was 20.
0509 million tons, a year-on-year increase of 4.
73%.

Spot market: PVC market in Qilu Chemical City is sideways, and the quotation is stable
.
The price of calcium carbide type 5 is 6180 yuan / ton, the price of ethylene Qilu S1000 is 6250 yuan / ton, and the price of S700 is 6350 yuan / ton.

Warehouse receipt inventory: exchange warehouse receipts reported 4680 lots, intraday -0 lots
.
Main positions: The top 20 long positions in the main contract are 140991 lots, -7433 lots, short positions are 130684 lots, -1589 lots, and the net position is 10307 lots, net long decrease
.

Summary: Although the introduction of domestic stimulus policies has weakened market panic, the initial control of the epidemic has also eased market worries
.
However, the operating rate of PVC manufacturers has rebounded, and the market supply is still increasing, although PVC downstream product enterprises have begun to resume work
one after another.
However, local government approval is still strict, the resumption of work in many places is slow, and PVC social inventory remains high
.
Sluggish downstream demand is expected to dampen the rebound height
of PVC.
The market focuses on the pressure of the 6300 line, and operationally, it is recommended that investors hold short orders with a profit level of the 6300 line cautiously
.