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Does the glass business really exceed expectations?

  • Author:Fanyu
  • Source:www.glass.com.cn
  • Release on:2017-11-30
    At the beginning of November, the Xingtai Environmental Protection Bureau issued a letter on the implementation of the state-owned unified standard sewage permits glass enterprises to suspend production line, to the failure to obtain permits for the discharge of emissions. Within two weeks thereafter, there were 9 glass production lines in Shahe area due to failure to obtain emission permits.
The Shahe area of continuous production lines, for Shahe local and even the national supply and demand contradictions have brought a certain relief, in the downstream demand for the overall change in the premise of little, the reduction of production capacity to promote the national glass price rise quickly. November 24, the national flat glass average price of 79.2 yuan/heavy box, up 8.45 yuan/heavy box, a number of regional prices in recent years. Currently the NationalGlassInventory of 31.06 million heavy boxes, reaching a low level of 2015 years. According to the research information of glass market in central Central, which is organized by Zheng Shang and Glass Association, the company expects to achieve zero inventory in mid-December by the end of rush hour.
In the context of slowing production growth, glass production line into the cold repair period, but also make the glass industry actual production decline trend. At present, the glass industry in production capacity of 889.26 million heavy boxes, the year-on-year reduction of 27.48 million heavy boxes. It is expected that the centralized Lengxiu of subsequent production lines will continue to relieve the supply pressure of the production capacity, and even cause the natural contraction of the supply end.
The demand side of the recent maintenance of stability, supply side shrinkage bring glass prices continue to rise, although the price of raw materials to maintain a high level, but the profitability of enterprises continue to improve, China's glass manufacturers four quarter results there is a super expected.