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February 2, 2024, 3:39 PM
1. Analysis of the float glass market
Float glass market prices rose steadily this week. Under the support of downstream demand, the focus of market transactions in North China and Central China has shifted upwards, and corporate shipments have increased; market prices in most other regions have remained stable, downstream factories have been on holiday one after another, and corporate shipments have been lukewarm.
Market prices in North China are operating on the strong side. Downstream companies need strong support for stocking up before the year, and glass companies have better de-warehousing conditions. The focus of market transactions in the Beijing-Tianjin-Tangshan and Shahe regions has shifted upwards; market prices in East China are operating steadily, and there is a certain stock situation in the middle and lower reaches, but the overall demand performance is weak, and corporate money collection is not good; market prices in Central China are rising within a narrow range, and downstream companies are generally receiving goods. The overall sentiment for purchasing goods is still good, coupled with the fact that companies are making more outsourcing, and overall shipments are good; glass market prices in South China are operating steadily, the operating rate of downstream companies continues to decline, the demand side is weak, and on-site inventories have increased significantly; Market prices in Northeast China are operating smoothly, and the implementation of the winter storage policy is still dominated. With the suspension of logistics during the Spring Festival, shipments of glass companies have slowed down significantly.
In terms of futures, glass futures prices peaked this week and fell mainly. Last week, price-protection policies in some regions led to a rebound in production and sales. Coupled with the macro-level central bank's RRR cuts and the introduction of various real estate policies, the market responded upward. However, market sentiment began to fall this week. Spot production and sales were not sustainable. The Spring Festival holiday was approaching, and downstream deep processing companies 'own orders fell sharply, which was directly transmitted to weakening demand for original films. The current trading logic may be a price repair between the cumulative expectation of weak demand in the off-season and its own high profit level. However, given the current strong overall glass inventory structure and the repeated macro sentiment after the year, the downside is expected to be relatively limited.
2. Comparison of float glass market prices
3. Float glass inventory
The total inventory of float glass manufacturers this week was 32.431 million heavy boxes, compared with 31.977 million heavy boxes last week, an increase of 454,000 heavy boxes from last week, or 1.42%.
4. Weekly operating rate of float glass
This week, the operating rate of float glass companies increased slightly compared with last week. The weekly operating rate of float glass was 84.14%, an increase of 0.28%.
5. Weekly float glass output
There were 303 float glass production lines this week, of which 256 were in production. The float glass output was 1.2101 million tons, a decrease of 0.16 million tons from last week, or 0.13%.
