SunSirs: Building Material, Glass Market Fell Steadily with Limited Domestic Demand (December 30, 2019-January 4, 2020)

1  Price Trend

According to the monitoring of SunSirs, the price of glass fell steadily last week. The average price of glass at the beginning of the week was 20.72 RMB/ m2, and the average price at the end of the week was 20.63 RMB/ m2. The price fell within the week by 0.43%.

2  Market Analysis

Product: glass prices fell steadily last week. In terms of regions, the production enterprises in Shahe area were generally affected by road transportation and environmental protection restrictions, and the price basically remained unchanged. The production enterprises in Central China were generally out of stock, the confidence of traders were insufficient, the price of some manufacturers had been reduced, the strength of out stock had been increased, and the market price trend was weak. The performance of East China was relatively stable, and the outbound situation was normal. The market price in South China remained stable. The price trend in Southwest China was weak, and the prices of some manufacturers were down. In order to boost market confidence in Northeast China, the manufacturer's quotation rose as a whole. The general trend of glass spot market in Northwest China was general.

Production capacity: According to the data of Industry Association, on January 3, 2020, the utilization rate of glass production capacity was 69.31%; it rose 0.01% on a month on week basis, up -0.27% on a year-on-year basis; after eliminating excess production capacity, the utilization rate of glass production capacity was 82.30%, up -0.05% on a month on week basis, up - 0.92% on a year-on-year basis. The production capacity of glass in production is 936.12 million weight boxes, an increase of 3.42 million weight boxes on a month on week basis, and an increase of 13.62 million weight boxes on a year-on-year basis. On January 3, 2020, the inventory of the industry was 39.03 million weight boxes, an increase of 710,000 weight boxes on a month on week basis, and an increase of 7.08 million weight boxes on a year-on-year basis. Weekend inventory days were 15.22 days, up 0.22 days on the previous week, up 2.58 days on a year-on-year basis.

Industry chain: last week, the delivery of domestic soda ash manufacturers improved, and the inventory of soda ash manufacturers continued to decline, but the overall inventory is still at a high level. Considering the Spring Festival, traders are more cautious to watch the market, and it is expected that the market of soda ash will be sorted out and operated this week.

3  Market Forecast

SunSirs expects that the market price of glass will be stable in the short term. With the approaching of the Spring Festival holiday, the terminal demand gradually weakens. In the short term, the overall market demand can be maintained for a period of time. The price is mainly stable, supplemented by a small downward tilt.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com .