SunSirs: China Glass Prices Rose steadily last Week (June 22-26)

According to the monitoring of SunSirs, last week's overall glass price increased slightly. At the beginning of the week, the average price of the glass was 18.42 RMB/ ㎡, and at the end of the week, the average price was 18.6 RMB/ ㎡. Within the week, the price increased by 0.98%.

Market Analysis

Last week, the glass price rose steadily. In Shahe area of North China, the situation of production enterprises' outbound was not changed much, and the market transaction was stable. Traders and processing enterprises basically purchased on demand, mainly China domestic orders for building decoration and decoration, and foreign trade export orders were few. Production enterprises in East China mainly took out of warehouse and withdraw funds, the market price was relatively stable, the operating rate of downstream processing enterprises had little change, and the market transaction was general. The overall trend of glass spot market in South China and central China was general, and the market sentiment was stable. The overall trend of the spot market of glass in Southwest China was general, and the quotations of some manufacturers increased slightly, so as to boost market confidence. The trend of glass in Northwest China was acceptable, and the manufacturer's quotation rose slightly. The sales of glass in Northeast China were acceptable, and the market price was relatively stable.

In terms of production capacity, according to the data of Industry Association, the utilization rate of glass production capacity on June 24, 2020 was 67.07%; it rose by -0.26% on a month on week basis and -2.45% on a year-on-year basis; after eliminating excess production capacity, the utilization rate of glass production capacity was 79.64%, rose by -0.31% on a month on week basis and -3.37% on a year-on-year basis. The glass production capacity was 911.82 million TEUs, an increase of -3.6 million TEUs compared with the previous week, and an increase of - 15.78 million TEUs compared with last year. On June 24, 2020, the industrial inventory was 48.96 million TEUs, an increase of -320,000 TEUs on a month on week basis, and an increase of 6.82 million TEUs on a year-on-year basis. Weekend inventory days were 19.60 days, up -0.05 days on a month on week basis, up 3.02 days on a year-on-year basis.

Market Forecast

According to the prediction of SunSirs, last week, the price of glass rose steadily, and most of the manufacturers used to increase sales promotion and price fixing operation. At present, the inventory of enterprises is further reduced, and the inventory pressure of production enterprises is reduced, which plays a significant role in supporting the market price. However, in the near future, the recovery and increase of production capacity are also accelerated. In addition, the rainy season is affected by weather factors such as rainfall. Downstream processing enterprises and traders are relatively cautious in their mentality. They just purchase by needs. In the short term, glass prices will stabilize.

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