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Multiple production lines resumed production - glass price increase is difficult

  • Author:Fanyu
  • Source:Www.glass.com.cn
  • Release on:2018-07-18
Since June, with the inventory of soda ash manufacturers climbing, soda stocks at the end of June climbed to around 500,000 tons, suppressing the pace of soda ash prices. According to calculations, the current production profit of coal-fired glass can reach more than 300 yuan, although it has dropped from the peak at the end of the first quarter, but the gross profit of the factory is still nearly 25%.

Since July, glass futures have oscillated higher, with the main 1809 contract rising by 9.31%. However, only from the performance in July, the gains have slowed down. Since the beginning of the month, the cumulative increase has been 0.69%. As of yesterday's close, the contract closed at 1,467 yuan / ton. Analysts believe that there will be some pressure on the supply side from July to August, and the pressure on glass prices will increase in the later period.
flat glass

Recently, the general trend of the glass spot market is general, and the production and sales of production enterprises have not increased significantly. On the 11th, the East China North China Conference was held. After the meeting, the manufacturers decided to further digest the cost. Most of the price increases by RMB 20/ton, but the implementation remains to be seen. Many production lines will resume production in July and August, and the glass will have a large upward pressure.

Gold nine silver ten isglassIn the peak season of sales, in order to catch up with the production in the peak season, the release rate of production capacity will be accelerated. According to statistics, at present, 500 tons of Anhui Xinyi has been resumed. From July to August, there are 1400 tons of Benxi Fuyao Line, 400 tons of Hubei Minghong Glass, 600 tons of Kaisheng Jinghua, 600 tons of Hebei CSG and 1200 tons of Wuhan Changli. New production capacity has been put on the market. The centralized ignition of the production line will greatly increase the supply pressure of the market.

The recent glass price is still subject to weak demand, while the marginal pressure of supply increases with the increase in production capacity. On the demand side, the May completion data showed that although the marginal improvement was small, the demand for downstream real estate was still weak. Since the beginning of the year, the overall production capacity of the supply end was greater than that of the cold repair capacity. There was some pressure on supply, and there was still a contradiction between supply and demand. In the medium term, under the fundamental weakness and valuation pressure, we maintain a cautious view on the price of glass futures.