Falling average price of float glass

In mid-June, except for the Qinhuangdao region, the price of float glass prices has been declining in other regions. CITIC Securities analysts believe that the downward trend of the float glass boom in the short-to-medium term is now in place, so it is cautious about the price trend of float glass after the second half of the year.

Analysts pointed out that the recent new production lines in North China have been put into operation in succession, which has continued to increase the supply pressure of the industry, which has caused the prices of float glass in all regions to fall to varying degrees in the middle of this month. In terms of new production capacity, online production capacity increased by 4,450 tons/day in the middle of this month, and new ignition capacity reached 3,600 tons/day. It is reported that in order to avoid pressure on future stocks, manufacturers have taken measures to reduce the location.

At present, the country’s float glass inventory has been digested to 16.01 million boxes, and the average price has dropped to 93.86 yuan/weight box. From a regional point of view, glass prices in Beijing fell slightly in the current tenth and prices are expected to decline in the future; the current price in the Qinhuangdao market is stable, but Qinhuangdao North Glass Group expects to delay production of the two production lines put into operation in the current ten-year period to 8- In October, it is expected that the market price in the future Qinhuangdao region will still fall to a certain extent; the price in the Guangzhou region will continue to decrease in the current period. Affected by the rainy weather, the market demand will be lowered. It is expected that the future market price in the Guangzhou region will also be lowered. The price of cement in the region remained stable, with slight fine-tuning. However, as the East China region gradually enters the rainy season, prices in the East China region are expected to continue to fall. In the near future, Henan's market shipments and inventory are basically the same as in the early days, and only some species are fine-tuned. It is expected that the current stable trend will continue in the future.

Analysts believe that in the short to medium term. First, from the point of view of production capacity, new production lines will be put into operation one after another and will significantly increase the industry's future supply. Newly igniting six float glass production lines in the current year has led to a sudden increase in industry supply. Second, from the perspective of demand, the South China region in East China will gradually enter the traditional off-season of the glass industry, while the Meiyu season will also affect the demand for float glass. Analysts expect that the industry supply pressure resulting from the centralized production of new float glass production lines prior to “9.30” last year will rise significantly. Under the circumstance that demand is affected by real estate regulation, analysts will float after the second half of the year. The price of glass is cautious.

Therefore, glass companies should not only look at immediate interests, but also pay attention to the long-term development of the glass industry and rationally arrange market supply.