SunSirs: Off Season is Coming, China Glass Market was Down (January 15-22)

According to the monitoring of SunSirs, the price of glass fell last week. The average price of glass last weekend was 26.43 RMB/ m2, while the average price of glass this weekend was 24.65 RMB/ m2. The price fell within the week by 6.73%.

Last week, glass was in the traditional off-season, demand waspoor, market prices fell. In terms of different regions, in Shahe area of North China, manufacturers in Shahe area lowered their prices by a large margin, and the quotations of some manufacturers lowered by about 2.5-1.8 RMB/ m2, so as to maintain a better delivery rate. The market price trend in East China was weak. The price of some enterprises decreased slightly, about 0.5-0.8 RMB/ m2. In South China, orders from local processing enterprises were OK. The price decrease was about 0.5-1 RMB/ m2. The price of glass manufacturers in Central China reduced. The recent increase in the number of foreign glass imports has increased the competitive pressure. Some enterprises have increased the price reduction, with a decrease of about 3-3.3 RMB/ m2, in order to increase the delivery speed of local enterprises. The price trend in Southwest China was weak, with a slight decrease of about 0.5 RMB/ m2. The overall industry market of the northeast region was poor, and the manufacturer's quotation was reduced by about 1.2-2.3 RMB/ m2. The overall trend of glass spot market in Northwest China is light, and quotation was reduced by 95-1 RMB/ m2.

According to industry association data, on January 22, 2021, the utilization rate of glass production capacity was 71.07%, up 0.00% from last week and 1.44% from last year; after eliminating excess capacity, the utilization rate of glass production capacity was 84.32%, up 0.00% from last week and 1.64% from last year. The production capacity of glass in production was 982.62 million heavy containers, an increase of 0 million heavy containers compared with last week, and an increase of 42.3 million heavy containers compared with last year. On January 22, 2021, the industry's inventory was 29.12 million heavy containers, an increase of 2.36 million heavy containers on a month on month basis, and an increase of -10.65 million heavy containers on a year-on-year basis. The weekend inventory days were 10.82 days, an increase of 0.88 days compared with last week, and a year-on-year increase of -4.62 days.

According to the data released by the National Bureau of statistics, in December 2020, the output of flat glass was 83.78 million heavy containers, an increase of 2.4% over the same period last year; from January to December, the cumulative output of flat glass was 94.572 million heavy containers, an increase of 1.3% over the same period last year.

According to the prediction of SunSirs, the price of glass was lowered last week, and the market focused downward in the off-season. In the upstream, the price of soda ash and petroleum coke fluctuated little, while the price of LNG fell. The inventory of downstream processing enterprises and traders was at a low level, the wait-and-see mood is obvious. In the short term, China glass market is mainly weak, and there is still space for downward adjustment.

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