SunSirs: Strong in the South and Weak in the North, China Glass Spot Market Rose first and then Fell in December

According to the Commodity Analysis System of SunSirs, the glass spot market rose first and then fell in December, with overall prices slightly rising. On December 1st, the average price of glass was 21.67 RMB/square meter. As of the end of December 28th, the average price was 21.85 RMB/square meter, and the price increased by 0.83% during the month.

In December, the glass spot market first rose and then fell, and overall, prices slightly increased. In early December, the price trend of glass spot market was good, and the overall industry production and sales situation was good, with market prices rising. In the middle of the month, the spot market price of glass weakened, and the market price began to decline. The overall outbound situation is still acceptable. In the latter half of the year, the overall production and sales situation of the glass industry was average, with relatively stable market prices and flexible transactions. Overall, except for North China and Northwest China, the inventory of enterprises is showing a downward trend. As of now, the market quotation in the Shahe area is around 20.85 RMB/square meter to 21.3 RMB/square meter.

On December 6th, the glass production line in Humen, Xinyi, Dongguan reported that 500 tons of crystal ash were converted into European ash and put into production. Qinghai Yaohua Special Glass Co., Ltd.'s 600 ton production line is protected from kiln damage. On December 7th, 600 tons of water were discharged from Zhejiang Qibin Shaoxing Line 1. On December 7th, Puyang converted 400 tons of white glass into automotive glass (F green). On December 12th, the 560 ton technical renovation line of Yaohua Glass, which originally produced deep gray glass, was converted to Yaohua gray glass. On December 12th, Yingkou Xinyi Second Line produced 1,000 tons of European gray glass. On December 14th, 600 tons of white glass on the Binzhou Second Line of HeRMB Banner were recently converted to European gray. On December 14th, 600 tons of European ash from Zhangzhou Qibin Third Line were recently converted to Ford Blue. On December 15th, a 1,000 ton kiln in Xinyi, Anhui was successfully ignited. On December 20th, the 1,200 ton lead for the Shaoxing Qibin relocation line. On December 22nd, Dalian Yaopi Glass Co., Ltd.'s 700 ton production line originally produced ultra white glass, and in early December, it switched to producing white glass.

In November 2023, the national production of flat glass was 81.859 million weight boxes, a year-on-year increase of 3.5%. From January to November 2023, the national production of flat glass reached 87.7539 million weight boxes, a year-on-year decrease of 6.0%.

In terms of caustic soda, according to monitoring data from SunSirs, the price of caustic soda increased in December. The average market price of light soda ash at the beginning of the month was 2,620 RMB/ton, and the average market price at the end of the month was around 2,790 RMB/ton, with a price increase of 6.49%. SunSirs analysts believe that domestic soda ash prices remained strong in December. The social inventory is not high, and enterprises from all sides are significantly destocking. Downstream procurement is mainly based on demand, and there is a supply-demand game. Overall, it is expected that the domestic pure alkali price will remain stable in the short term, depending on downstream market demand.

In terms of LNG, according to the commodity market analysis system of SunSirs, as of December 28th, the average price of liquefied natural gas in China was 5,510 RMB/ton, which is 6,556 RMB/ton compared to the average price on December 1st. The decline in domestic liquefied natural gas prices this month was 15.95%. Liquefied natural gas analysts from SunSirs believe that as the New Year holiday approaches and hazardous chemical vehicles are about to be restricted on highways, liquid plants have a strong attitude towards discharging their inventory. Tomorrow, a new round of bidding for raw gas will begin, with the market mainly observing. Expected short-term consolidation of domestic liquefied natural gas prices.

According to SunSirs's forecast, the spot market price of glass will first rise and then fall this month. Upstream soda ash prices have risen, while domestic liquefied natural gas prices have significantly declined, with average cost support. At present, the market is divided in the south, and the processing enterprises in the middle and lower reaches of the south are mainly in urgent need of replenishment, and the delivery situation is still acceptable; The winter climate and environmental impact in the north pose certain difficulties in transportation, and the market production and sales situation is average. It is expected that in the short term, the price of glass spot market may continue to be strong in the south and weak in the north.

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