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PVC Upstream supply increase downstream just need to be fair.

- Sep 30, 2018 -

       Upstream overall inventory is still not much, large upstream enterprises basic continuation of pre-sale mode, of course, there are some enterprises Isan-based, there are some stocks, but in general, the whole upstream enterprises have no obvious sales pressure, and downstream aspects, in view of this year, the overall range of PVC vibration situation,Downstream procurement strategy has been just need small single with the production-based, even to the holiday, the downstream of the stock enthusiasm is not strong, so the overall low downstream inventory; Now the overall supply of traders is not much, there is profit, the basic or fast-forward to the main, because this year PVC no big market, traders will not bulk stock.

      At present, in the middle and lower reaches of the inventory is not much, although this year through my exchange with the market participants, the reaction downstream demand, but in reality, the upstream supply of the volume can only be the end of the downstream digestion, upstream supply of the same increase in the output is mostly digested, then this can only be downstream demand is also increased. What are the main areas where demand is being increased?

       The current market comparison is mainly in the following areas:

  Environmental protection and cost under pressure leading enterprises to digest most of the industry's supply increase, large enterprises order, the overall start higher;Industry concentration improvement, large-scale enterprise production technology and quality is relatively high, increase the proportion of PVC resin powder in the product;The increase of direct supply, resulting in more inventory outside the trade links, and traders docking enterprises to small and medium-sized, so demand feedback in general;PVC Market this year to the range of shock-based, downstream is basically a low-demand procurement-based, although the downstream procurement volume has not decreased, but this kind of procurement to people feel the need for general. In summary, upstream supply increases, but the social inventory does not have a significant increase in synchronization, indicating that the downstream demand is actually growing, although we have been talking downstream demand, 

        but just need to be fair, so this year there is no obvious light peak season, September downstream demand recovery general, but not to meet our high season expectations , but there is no obvious class library in the social inventory, so I prefer that the upstream increase in supply is actually largely digested downstream.

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