The cost side of PVC is still supported, and it is expected that the short-term shock will be strong

As of August 4, the weekly data showed that the overall operating load of PVC was 75.85%, a month on month decrease of 2.21 percentage points; Among them, the starting load of calcium carbide PVC was 77.04%, with a month on month decrease of 2.18 percentage points; The operating load of PVC by ethylene method was 71.46%, with a month on month decrease of 2.29 percentage points.

As of August 5, 2022, the inventory days of Chinese PVC production enterprises in the warehouse were 5.58 days, an increase of 0.28 days over the previous month. The maintenance of domestic PVC production enterprises increased, but the warehousing and delivery were limited and the demand was not smooth. The market trade and downstream delivery slowed down, and the inventory continued to increase slowly.

In the high-temperature off-season, the demand side of PVC is relatively low. PVC downstream products are related to real estate. Although the relevant policies on real estate have been issued recently, it takes time and process for the actual demand to land. The overall operation of pipe enterprises is less than 50%, and it is difficult to improve the terminal demand in the short term. The social inventory in East and South China fluctuated at a high level, slightly increasing to 354500 tons, almost twice that of the same period last year.