Weak and difficult to change, the market continues to decline

Weak and difficult to change, the market continues to decline

Float glass market price

Analysis of float glass market

Today, China's 5mm float glass market is mainly down, with the downward adjustment concentrated at 20-100 yuan/ton. The price of floating glass in the Northeast and Northwest regions is relatively stable. The market price of 5mm large-board float glass in South China has dropped significantly. The demand side in the region has started slowly and its performance has been weak. Most companies have lowered their quotations, and the focus of market transactions has shifted. Companies in the floating glass market in Central China are relatively flexible in their quotations; preferential transaction policies in the North China market, coupled with environmental protection supervision in some regions, have led to poor shipment performance. The Southwest region has lowered its price by 70 yuan/ton, the market fatigue attitude has continued, and regional inventories have increased.

Float Glass Index Analysis

According to data from Boduo, the float glass price index on March 11 was 1,695.6, down 30.66 from the previous working day, or 1.78%.

Futures dynamics

According to data from Boduo, the opening price of FG2405, the main glass contract, on March 11, was 1619 yuan/ton, and finally closed at 1572 yuan/ton, an increase of-2.96% within the day. The intraday high was 1626 yuan/ton, the lowest was 1555 yuan/ton, holding 729779 lots, a month-on-month +54675 lots.

Today, the glass market significantly increased its position downward. Glass itself is still in the realistic logic of strong supply and weak demand. Glass factory prices continue to decline. Over the weekend, some regions introduced price insurance policies, but production and sales are still weak. Moreover, the policy of not speculating on housing and housing was once again mentioned at the two sessions over the weekend. The expected easing of real estate policies has cooled to a certain extent, and the performance of related chain commodities is weak today. In the short term, the profit level of glass is still acceptable, the supply remains high and stable, and the mentality of downstream replenishment is still dominated by just demand. The orders and refunds of downstream deep processing companies are still optimistic. If they want to increase their enthusiasm for replenishment, it is still necessary to see that the terminal demand situation has improved. Until then, it is difficult to say that the fundamentals of glass will improve.

market outlook

The upstream soda ash market fluctuated within a narrow range, with prices from individual manufacturers increasing, production equipment moving slightly, and the soda ash market may operate steadily in the short term; the floating glass market has continued to decline, with more wait-and-see sentiment in the market, weak trading atmosphere, and insufficient upward price momentum. It is expected that the float glass market price will continue to decline in the short term.