SunSirs: Building Material, Heavy Inventory Pressure, Glass Priced Down Last Week (April 6-10)

According to the monitoring of SunSirs, the price of glass was lowered last week. At the beginning of the week, the average price of glass was 19.27 RMB/㎡, and at the end of the week, the average price was 18.77 RMB/㎡. Within the week, the price was lowered by 2.59%.

Market Analysis

Product: the market price of glass was lowered last week. Shahe environmental protection supervision in North China was relatively strict, the market price was slightly downward adjusted, and the transaction price was more flexible. South China glass market price correction range was relatively large. In Central China, the market price was flexible, the output of production enterprises had increased significantly, and road and waterway transportation had basically returned to normal. The wait-and-see mood of traders and processing enterprises in East China was obvious. The scope and scope of price adjustment of local glass manufacturers had been gradually increased, the overall market trend was weak, and the market price tended to be flexible. In Southwest China last week, the pressure on production enterprises to issue increased, the market price was lowered, and the main reason was to increase the issue. The general trend of glass market in Northeast China was general, the speed of production enterprises' ex-warehouse changed little, and the price was slightly adjusted. Last week, the general trend of the market in Northwest China was general, with the production enterprises mainly operating at a firm price, and the market price was relatively stagnant.

Capacity: there was no increase or decrease in capacity last week. In consideration of the current spot price pressure, the production line ignition time plan has been postponed to the second half of the year. There are also plans to cut production capacity in some areas due to the impact of environmental protection supervision. According to the data of Industry Association, on April 10, 2020, the utilization rate of glass production capacity was 68.33%; it was 0.00% higher than last week and -1.54% higher than last year; after eliminating excess capacity, the utilization rate of glass production capacity was 81.13%, 0.00% higher than last week and -2.35% higher than last year. The glass production capacity in production was 922.92 million TEUs, an increase of 0 million TEUs on a month on week basis, and an increase of -7.98 million TEUs on a year-on-year basis. On April 10, 2020, the industry's inventory was 52.78 million TEUs, an increase of 200,000 TEUs compared with last week, and an increase of 7.52 million TEUs compared with last year. Weekend inventory days were 20.87 days, 0.08 days higher than last week, 3.13 days higher than last year.

Industrial chain: up to now, the overall trend of soda ash in East China has been temporarily stable. The mainstream market price of light soda ash is about 1,350-1,500 RMB/ ton, and the mainstream market price of heavy soda ash is 1,400-1,550 RMB/ ton. The market transaction is general. It is expected that the price of soda ash will be more vulnerable in the short term. In North China, the market price of soda ash in narrow range is about 1,450-1,550 RMB/ ton for light soda ash and 1,500-1,600 RMB/ ton for heavy soda ash. There are not many transactions in the market. It is expected that the market price of soda ash in narrow range will be operated in the short term.

Market Forecast

According to the prediction of SunSirs, the overall inventory of glass is relatively large, and the traders' wait-and-see mood is obvious. The impact of emergencies on foreign trade export orders and original pieces of export glass is gradually emerging, and the pressure on glass enterprises to withdraw funds is relatively large. In the short term, the slight decrease of glass market will continue.

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