News summary
PVC operating rate will decline in the short term but is expected to pick upplaymoneypokerInventories remained at historical highs. Downstream demand is insufficient and inventories have not been removed. Market expectations will be boosted in the short term by policies and prices, but fundamentals are short.
Newsletter text
[PVC operating rate is now declining] According to market dynamic analysis, the operating rate of the PVC industry has reached 5.playmoneypoker.19 percentage points decline, currently 73.13%.
[Maintenance increased in mid-May, and operating rates declined briefly] In mid-May, due to increased maintenance activities, the operating rate of the PVC industry experienced a significant decline, but the market expects this downward trend to not last long.
[Terminal demand is still sluggish] Despite the impact of the real estate industry and construction progress, downstream demand for PVC is still insufficient, at the lowest level in the same period last year.
[PVC inventory reached 550,300 tons] Currently, the inventory of PVC is 550,300 tons, an increase of 2,800 tons from the previous period. Although operating rates in the upstream industry have declined in the short term, inventories remain at levels close to record highs.
[The market expects supply to gradually recover] The market expects that as the operating rate gradually recovers, supply will gradually recover. However, actual demand in downstream and end markets is still insufficient, and the operating rate of downstream companies remains at a historical low for the same period.
[Policy measures and market dynamics affect futures prices] Recently, the real estate stimulus policies and existing housing purchase and storage policies in some cities have had a positive impact on market expectations. At the same time, the increase in maintenance volume and the overall increase in commodity prices have also contributed to the short-term push up of PVC futures prices provides impetus.
[Fundamentals are still short] Although futures prices have increased in the short term, market analysts generally believe that this will not affect the fundamentals of the PVC industry and still show a short trend.