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 18.48 RMB/ ㎡, and the average price at the end of the week was 17.77 RMB/ ㎡. The price was lowered within the week by 3.58%.

Market Analysis

Product: the market price of glass fell last week. The transaction price of Shahe market in North China was further reduced. Environmental protection might have some impact on local production capacity. The prices in South China, East China and central China had been adjusted downward by a large margin. Prices in southwest, northwest and Northeast China also decreased to a certain extent. The general trend of the glass market was weak, the pressure of the production enterprises' outbound was large, the increase of outbound was the main factor, and the price was more flexible. Most traders and processing enterprises wait and see, and purchase cautiously.

Capacity: according to the data of Industry Association, on April 17, 2020, the utilization rate of glass production capacity was 67.93%; it rose by -0.40% month on week and -1.94% year on year; after eliminating excess production capacity, the utilization rate of glass production capacity was 80.66% and -0.48% month on week and -2.83% year on year. The production capacity of glass in process is 917.52 million heavy boxes, an increase of -5.4 million heavy boxes compared with last week, and an increase of - 13.38 million heavy boxes compared with last year. On April 17, 2020, the industry's inventory was 52.82 million heavy boxes, an increase of 40,000 heavy boxes on a month on week basis, and an increase of 7.54 million heavy boxes on a year-on-year basis. Weekend inventory days were 21.01 days, 0.14 days higher than last week, 3.26 days higher than last year.

Industrial chain: as of April 16, the weak and stable market of soda ash in East China has been running. The current mainstream market price of light soda ash is about 1,350-1,400 RMB/ ton, and the mainstream market price of heavy soda ash is 1,400-1,500 RMB/ ton. The market transaction is general. It is expected that the price of soda ash will be more vulnerable in the short term. In North China, the market price of soda ash in narrow range is about 1,430-1,530 RMB/ ton for light soda ash and 1,480-1,600 RMB/ ton for heavy soda ash. There are not many transactions in the market. 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 at a high level, the downstream processing enterprises generally start work, and some foreign trade processing enterprises delay or cancel more orders. At present, the stock pressure of enterprises is large. In the short term, the glass market is dominated by weak operation.

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