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Current Industry Profit Preferences - Increased Confidence in Spot Price Increases

  • Author:Fanyu
  • Source:Www.glass.com.cn
  • Release on:2018-03-30
Last week, the price of glass was brought to a low limit, driven by the drop in the price of black building materials. However, the recent increase in soda ash prices has strengthened the confidence of glass spot price increases.
During the Chinese New Year holiday, production companies continuously produce, and glass manufacturers’ inventory has soared. However, under the circumstance of abundant liquidity of manufacturers, this year the market has not only lowered its price, but has continuously raised its price. Since the Spring Festival, Shahe Glass has risen by RMB 80/ton, and other regions have also seen different increases in price.
The data shows that in recent years, manufacturers' inventory has generally reached the peak 1-2 months after the Spring Festival, and from this year's point of view, domestic glass inventory has dropped 620,000 weight boxes from the peak of the Spring Festival last week. However, the rapid decline in inventories does not prove that this year's demand market is strong. It is understood that the downstream construction after the Spring Festival this year is expected to be one week later than in previous years, and terminal new orders will only gradually emerge after the second quarter, while the downstream users of the production companies are connected to more than half of the traders, so a lot of glass inventory is concentrated in the trade. In the hands of business, the terminal did not digest much, and the inventory drop of glass manufacturers was more of a shift in inventory.
Judging from the manufacturers surveyed in Central China last week, there are many uncertainties in the market. Manufacturers hope that orders will increase in the later period, but the terminal's full reunification of trade unions will first consume trader stocks. It is understood that the current production and sales of the manufacturers have not been able to fully balance, most of which are up and down 90%, which means that the manufacturers' inventory after the Spring Festival can not be fully digested, and more needs to be confirmed. Once the future demand is lower, or less than expected, the spot price of glass will soon fall back.
The recent sluggish soda ash market began to rebound, Shahe heavy alkali raised 100 yuan / ton, the corresponding glass cost increased by 20 yuan / ton, later with the soda equipment inspection overhaul, supply tight or continue to stimulate price rebound. currentglassThe profit preference of the industry is not significantly related to the price of soda ash, but the increase in soda ash prices will undoubtedly “encroach on” the cost of glass. Near the delivery, the spot price of glass may be significantly reduced by 10% in a short period of time may be limited.
In the long run, the real estate regulation has been suppressed, the demand in the glass market has yet to be confirmed, and the glass social inventory has not been effectively digested. The production enterprises will accelerate the rhythm of production capacity under profit stimulation.