SunSirs: Building Material, Sluggish Demand, Glass Market Price was mainly Stable (February 10-14)

1  Price Trend

According to the monitoring of SunSirs, the glass price was stable last week, with an average price of 20.47 RMB/ m2.

2  Market analysis

Product: glass prices were stable last week. Due to the impact of COVID-19, the resumption of work in glass enterprises was generally delayed, and the resumption rate of downstream enterprises was low. In terms of regions, the production enterprises in Shahe area were affected by the low return rate of highway transportation and downstream enterprises, and the inventory was high. At present, there is no change in the stock out of the glass production enterprises in Central China. The situation of high stock and tight supply of raw materials has improved. Production enterprises in North China, East China and South China basically took orders before the Spring Festival holiday as the main mode of delivery, with few orders after the festival and little change in enterprise delivery. At present, the main mode of delivery is road transportation, with fair market confidence. The inventory pressure of the southwest and northwest production enterprises is relatively large, and the downstream enterprises return to work late, and the demand is basically not started. The overall trend of Northeast China is better than that of other regions, and the output of production enterprises has increased, mainly including shipping containers and exports, with little impact.

Production capacity: some production enterprises with large inventory began to limit production, and some production lines began to braise and protect kilns. In the early stage, the production lines planned for cold repair and production resumption and shutdown were basically postponed to about March, mainly due to the lack of relevant technical personnel and technical support. According to the data of Industry Association, the utilization rate of glass capacity on February 14, 2020 was 68.69%; it is 0.00% higher than last week and 0.01% higher than last year; after eliminating excess capacity, the utilization rate of glass capacity was 81.56%, 0.00% higher than the previous week and -0.58% higher than last year. The glass production capacity was 927 million 720 thousand heavy boxes, an increase of 0 million heavy boxes compared with the previous week, and an increase of 17 million 220 thousand heavy boxes compared with last year. On February 14, 2020, the industry's inventory was 45.51 million heavy boxes, an increase of 2.46 million heavy boxes on a month on week basis, and an increase of 5.21 million heavy boxes on a year-on-year basis. Weekend inventory days were 17.91 days, up 0.97 days on a month on week basis, up 1.75 days on a year-on-year basis.

Industry chain: the overall trend of soda ash in Central China was stable last week. The current mainstream market price of light soda ash was about 1,300-1,350 RMB/ ton, and the mainstream market price of heavy soda ash was 1,400-1,500 RMB/ ton. Most of the downstream purchased soda ash by needs. It is expected that the price of soda ash will be more sorted and operated in the short term. The overall trend of soda ash in East China was temporarily stable. The current mainstream market price of light soda ash was about 1,350-1,550 RMB/ ton, and the mainstream market price of heavy soda ash was 1,500-1,700 RMB/ ton. The downstream is mainly rigid and requires procurement. It is expected that the price of soda ash will be more stable in the short term. The overall trend of soda ash in North China is temporarily stable. The current mainstream market price of light soda ash was about 1,570-1,600 RMB/ ton, and the mainstream market price of heavy soda ash was 1,550-1,600 RMB/ ton. The actual transaction is relatively flexible. It is expected that the price of soda ash will be narrow in the short term.

3  Market Forecast

The company expects the glass market to be stable in the short term. Due to the limitation of road transportation, the inventory pressure of production enterprises in most regions is relatively high. This week, with the resumption of work of traders and downstream deep processing enterprises and the improvement of transportation, the normal marketing speed will be gradually restored.

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