According to the monitoring of SunSirs, the average price of glass at the beginning of last week was 16.78 RMB/ ㎡, the average price at the weekend was 16.82 RMB/ ㎡, and the price in the week was increased by 0.24%.

Market Analysis

Product: last week, the glass was suppressed first and then raised slightly overall. In terms of Shahe in North China, affected by environmental protection, the local production capacity has been reduced, but some foreign port glass has also actively entered the market in some parts of North China. Overall, the market price has not changed much. The operating rate of downstream processing enterprises in East China has increased significantly, the enthusiasm of traders to prepare goods has increased, and the quotation of manufacturers has increased slightly. In South China, the amount of glass imported from other glass ports decreased, the level of local production and sales was good, and the price continued to rise. The production enterprises in the central region have normal outbound, market quotation has increased, and the orders of local processing enterprises are general. The trend of glass in Southwest China is fair, and the market price increases slightly. The price of glass market in Northeast and Northwest China has not changed much.

Capacity: according to the data of Industry Association, the utilization rate of glass capacity on May 15, 2020 was 66.45% ; up from the preious week -0.04% , up from last year-3.63%. After eliminating excess capacity, the glass capacity utilization rate was 78.88%, up from last week -0.05%, up from last year -4.83%. The production capacity of glass in production was 897.42 million heavy boxes, an increase of -60000 heavy boxes from the previous week, and an increase of -37.68 million heavy boxes from last year. On May 15, 2020, the inventory of the industry was 51.33 million boxes, an increase of – 260,000 boxes on a month on week basis, and an increase of 7.1 million boxes on a year-on-year basis. Weekend inventory days were 20.88 days, up -0.09 days on a month on week basis, up 3.63 days on a year-on-year basis.

Industrial chain: last week, domestic soda price was weak and stable, mainly running. The current mainstream market price of light soda ash was about 1,200-1,380 RMB/ ton, while the mainstream market price of heavy soda ash was 1,300-1,400 RMB/ ton. The market transaction was general. It is expected that the price of soda ash will be weak in the short term. The consolidation market of soda ash in Central China was running. The mainstream market price of light soda ash was about 1,150-1,250 RMB/ ton, and the mainstream market price of heavy soda ash was 1,250-1,350 RMB/ ton. The downstream demand was poor. It is expected that the price of soda ash will be more consolidated in the short term. The market price of soda ash consolidation in North China was running. The mainstream market price of light soda ash was about 1,300-1,450 RMB/ ton, and the mainstream market price of heavy soda ash was 1,450-1,600 RMB/ ton. The market transaction was general. It is expected that the price of soda ash will be more consolidated in the short term. The average operating rate of domestic soda ash manufacturers is about 80%.

Market Forecast

According to SunSirs, last week's glass first suppressed and then raised slightly overall. The reduction of glass price in the early stage has effectively stimulated the enthusiasm of traders and processing enterprises to prepare goods. The price difference between regions has been narrowed, and the outbound of local manufacturers has continued to increase. In the short term, glass prices are in a slow recovery stage.

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