The downward trend of float glass in the short to medium term

It is reported that in mid-June, except for the stability of the Qinhuangdao area, the price of float glass has declined in other regions. CITIC Securities analysts believe that the downward trend of the float glass boom in the short-to-medium term is now in place, so it is cautious about the price trend of float glass after the second half of the year.

Analysts pointed out that the recent new production lines in North China have been put into operation in succession, which has continued to increase the supply pressure of the industry, which has caused the prices of float glass in all regions to fall to varying degrees in the middle of this month. In terms of new production capacity, online production capacity increased by 4,450 tons/day in the middle of this month, and new ignition capacity reached 3,600 tons/day. It is reported that in order to avoid pressure on future stocks, manufacturers have taken measures to reduce the location.

Analysts believe that the downward trend of the float glass industry in the short-to-medium term has now come. First, from the perspective of production capacity, new production lines will be put into operation one after another, which will significantly increase the industry's future supply. Newly igniting six float glass production lines in the current year has led to a sudden increase in industry supply. Second, from the perspective of demand, the South China region in East China will gradually enter the traditional off-season of the glass industry, while the Meiyu season will also affect the demand for float glass. Analysts expect that the industry supply pressure resulting from the centralized production of new float glass production lines before “9-30” last year will rise significantly. Under the circumstance that demand will be affected by real estate regulation, analysts will be after the second half of the year. The price of float glass is cautious.

At present, the country's float glass stocks have been digested to 16.01 million heavy cases, and the average price has dropped to 93.86 yuan/weight. In terms of regions, glass prices in Beijing fell slightly in the current tenth, and prices are expected to fall in the future; the current price in the Qinhuangdao market is stable, but Qinhuangdao North Glass Group expects to delay production of the two production lines put into operation in the current ten days to 8 - In October, it is expected that the market price in the future Qinhuangdao region will still fall to a certain extent; in the Guangzhou region, the price will continue to decrease in the current period. Affected by the rainy weather, the market demand will be reduced. It is expected that the future market price in the Guangzhou region will also be lowered. Recently, the cement price in Shanghai has been stable, with slight fine-tuning. However, with the gradual entry into the rainy season in East China, prices in East China are expected to continue to fall. In the near future, shipments and stocks in the Henan market are basically the same as in the early days. The price is fine-tuned and it is expected that the current stable trend will continue in the future.