Price Trend

According to the monitoring of SunSirs, the price of glass was lowered last week. The average price of glass at the beginning of the week was 20.2 RMB/ square meter, and the average price at the end of the week was 19.88 RMB/ square meter. The price was lowered within the week by 1.58%.

Market analysis

Product: in Shahe area of North China, the inventory pressure is relatively large, the price of some manufacturers is reduced by 0.3-0.4 RMB/ m2, the outbound situation is improved, and the market turnover is increased. Manufacturers in South China should speed up the speed of ex-warehouse, reduce the price by 1.5 RMB/ m2, increase the competitiveness of glass in the surrounding market, and further improve market confidence. The general trend of East China is general, and there is a certain pressure for enterprises' goods to leave the warehouse. It is expected that the prices of local manufacturers in East China will be more flexible in the future. Sales in Central China have also improved significantly. Production enterprises in Northeast China have increased their sales to the neighboring areas of Beijing, Tianjin and Hebei. The market turnover in southwest and Northwest China has not changed much, and the price has been slightly adjusted.

Capacity: according to the data of Industry Association, the utilization rate of glass capacity on March 20, 2020 was 68.38%; up 0.00% on a month on week basis, up -0.62% on a year-on-year basis; after eliminating excess capacity, the utilization rate of glass capacity was 81.19%, up 0.00% on a month on a week basis, up -1.33% on a year-on-year basis. The production capacity of glass in process was 923.52 million cases, an increase of 0 million cases on a month on week basis, and an increase of 8.82 million cases on a year-on-year basis. On March 20, 2020, the industry's inventory was 52.24 million TEUs, an increase of 680,000 TEUs on a month on week basis, and an increase of 7.67 million TEUs on a year-on-year basis. Weekend inventory days were 20.65 days, 0.27 days higher than last week, 2.86 days higher than last year.

Industrial chain: up to now, the overall trend of soda ash in East China has been temporarily stable. The mainstream market price of light soda ash is about 1,350-1,550 RMB/ ton, and the mainstream market price of heavy soda is 1,500-1,700 RMB/ ton. The overall trend of soda ash in Central China is temporarily stable. The mainstream market price of light soda ash is about 1,300-1,350 RMB/ ton, and the mainstream market price of heavy soda ash is 1,400-1,500 RMB/ ton. In North China, the market price of soda ash in narrow range is about 1,570-1,600 RMB/ ton for light soda ash and 1,700-1,800 RMB/ ton for heavy soda ash. The actual transaction is relatively flexible. It is expected that the market price of soda ash in narrow range will be operated in the short term.

Market Forecast

According to the prediction of SunSirs, the overall inventory of glass is still at a high level, and the pressure of market operation remains. In the short term, the glass market will also focus on weak consolidation.

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