SunSirs: China Glass Price Decreased slightly Last Week (October 19-23)

According to the monitoring of SunSirs, the price of glass decreased last week, with an average price of 23.75 RMB/ m2, while the price dropped slightly during the week by 0.71%.

Market analysis

Last week, and the overall decline of glass price was slightly more than the rise. In the Shahe area of China, the market turnover last week was fair, the manufacturers' inventory was low, and the glass price was basically stable. The demand of terminal market in East China is better, and the orders of downstream processing enterprises are better. Glass prices rose slightly, up 0.2-0.3 RMB/ m2. The trend of South China and South China is better, and the quotations of some manufacturers have increased by 0.2-0.3 RMB/ m2. The speed of downstream procurement remained normal and the market confidence was fair. The production enterprises in Central China mainly increased the funds for ex warehouse and withdrawal, and the price decreased by about 0.5 RMB/ m2. The market demand for glass in Southwest China is general, and the prices of some manufacturers have been slightly adjusted downward, with a decrease of about 0.3 RMB/ m2. The market transaction in Northwest China is fair, and the market price is mainly stable. Enterprises in Northeast China mainly focused on speeding up inventory reduction, while glass production enterprises lowered their prices by 0.2-0.3 RMB/ m2.

In terms of capacity, there was no capacity change last week. In the early stage, the production lines of ignition and resumption of production were gradually exerting their production capacity. In the later stage, some production lines in East China and other regions had plans to resume production by ignition or cold repair, but the overall supply and demand changes little.

According to the data of the industry association, on October 23, 2020, the glass capacity utilization rate was 69.16%; the month on month increase was 0.00% and the year-on-year increase was - 0.57%; after excluding the excess capacity, the glass capacity utilization rate was 81.90%, up 0.00% month on month and -1.05% year-on-year. The glass production capacity was 954.42 million heavy containers, an increase of 0 million containers compared with the previous week, and an increase of 20.52 million heavy boxes compared with last year. On October 23, 2020, the industry's inventory was 35.85 million heavy containers, an increase of -1.17 million heavy containers compared with the previous week, and an increase of -1.3 million heavy containers compared with last year. The number of weekend inventory days was 13.71 days, with an increase of -0.45 days compared with the previous week, and a year-on-year increase of -0.81 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, glass prices rose and fell by half in the last week, and the overall decline was slightly more than the rise. Due to the gradual temperature falling in the northern region, part of the real estate enterprises' orders for rush work have increased significantly. Enterprises in the Northeast mainly focus on accelerating the reduction of inventory, and the prices have slightly decreased. Generally speaking, the pressure of production enterprises is not big. The upstream soda ash runs stably. Petroleum coke and LNG are mainly up. The price of glass also plays a supporting role. In the short term, China glass prices remain stable.

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