The recovery of the demand side is less than expected, and the PVC market weakened

Last week, the operating rate of PVC enterprises fell by 2.
19 percentage points month-on-month to 77.
40%, of which calcium carbide method decreased by 1.
51 percentage points month-on-month to 78.
22%.

Recently, the PVC downstream operating rate continued to remain at a low level, 20 percentage points lower than the same period
.
The new start and completion of real estate is not good, there are not many new orders, the downstream is only to replenish the stock at the dip, and some enterprise products inventory is
backlogged.

In terms of social stock, as of May 29, social stock fell 0.
67% from last week to 310,100 tons, 90.
71%
higher than the same period last year.
Mainly because affected by the epidemic, downstream product manufacturers continue to resume work, but the recovery is still slow, and the downstream procurement plan is not strong
.
The depreciation of the RMB is conducive to exports, but the external price is stable, the domestic price rises, the export window is closed, the real estate data is still weak, the purchase of raw materials is cautious, the social inventory is delayed, and PVC is expected to be weak and shocking
.

After returning after the Dragon Boat Festival, the PVC market continued to rise, futures rushed above 8800, driving the spot market price to rise synchronously, domestic prices rose for many days, but the high-price transaction atmosphere was general, the downstream products industry started poorly, real estate was still weak, while exports weakened, demand recovery was less than expected, coupled with the decline in raw material calcium carbide prices, the cost side support declined, and under the bearish of many parties, PVC prices stopped rising and turning down in the middle and late of the week, and the market weakened
.