SunSirs: The Overall Price Fluctuation of Glass Market is not Large (October 9-16)

According to the monitoring of SunSirs, the glass price rose slightly last week, with an average price of 23.9 RMB/ m2 at the beginning of the week and 23.92 RMB/ m2 at the weekend, with a slight rise of 0.08% during the week.

Market Analysis

The price of glass market fluctuated little last week. The transaction of Shahe market in North China was good. Glass prices rose slightly, up 0.2-0.3 RMB/ m2. The demand of the terminal market in East China was fair, and the market price was mainly stable. The trend of South China was general and the market price was stable. The production enterprises in Central China mainly increased the funds for delivery and withdrawal, and the prices were slightly adjusted downward 0.2-0.3 RMB/ m2. The price of glass in Southwest China was stable. The quotation of glass manufacturers in Northeast and Northwest China rose slightly, up 0.2-0.3 RMB/ m2.

According to the data of the industry association, the utilization rate of glass production capacity on October 16, 2020 was 69.16%; it was 0.09% higher than last week, and -0.47% higher than last year; after excluding excess capacity, the glass capacity utilization rate was 81.90%, up 0.07% month on month, and -0.97% year-on-year. The glass production capacity was 954.42 million heavy containers, 4.2 million heavy containers more than last week, and 25.32 million heavy containers more than last year. On October 16, 2020, the industry's inventory was 37.02 million heavy containers, an increase of -1.38 million heavy containers compared with last week, and an increase of 260,000 heavy containers compared with last year. The number of weekend inventory days was 14.16 days, with an increase of -0.59 days on a month on month basis, and a year-on-year increase of -0.28 days.

According to the data released by the National Bureau of statistics, the output of flat glass in August was 81.38 million heavy containers, an increase of 3.1% year-on-year; the cumulative production of flat glass from January to August was 623.09 million heavy containers, an increase of 1.0% year-on-year.

Market Forecast

According to SunSirs, the southern glass market was more stable last week. Due to the gradual cooling of the temperature in the northern region, some real estate enterprises' orders for rush work have increased significantly, and the glass industry in northern China has mainly increased slightly. Generally speaking, the pressure of production enterprises is not big. The upstream soda ash runs stably. In terms of fuel, petroleum coke and liquefied natural gas rose. The price of glass also played a supporting role. In the short term, China glass market will mainly go smoothly, with a small price increase.

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