Prices stop falling and stabilize in most regions

Prices stop falling and stabilize in most regions

Float glass market price

Analysis of float glass market

Prices in most areas of China's 5mm float glass market stopped falling and stabilized today. The focus of transactions in the floating glass market in South China and North China has shifted slightly. The prices of manufacturers of 5mm large and small plates in Shahe area have been lowered by 16 yuan/ton, and prices in the Beijing-Tianjin-Hebei region have been relatively stable. The slow recovery of demand in the glass market in South China and the suppression of low-cost supplies have led to poor shipment performance. The quotations of floating glass manufacturers in other regions are relatively stable, and the quotations of individual companies have been lowered. Overall, the trading atmosphere in the floating glass market has warmed up.

Float Glass Index Analysis

According to data from Boduo, the float glass price index on March 12 was 1,683.75, down 11.85 from the previous working day, or 0.70%.

Futures dynamics

According to data from Boduo, the opening price of FG2405, the main glass contract, on March 12, was 1575 yuan/ton, and finally closed at 1598 yuan/ton, an increase of 0.82% within the day. The intraday high was 1607 yuan/ton, the lowest was 1571 yuan/ton, holding 678128 lots, a month-on-month-on-month.

Today, glass futures prices are mainly strong and volatile. Rumors emerged that banks provided financing support to real estate enterprises. Coupled with the fact that the main contract price of glass futures approached the production cost line, a large number of short orders chose to take profit and leave, resulting in a slight rebound today. However, glass itself is still in the realistic logic of strong supply and weak demand, and glass factory prices continue to decline. In the short term, the profit level of glass is still acceptable, the supply remains high and stable, and the orders and refunds of downstream deep processing companies are still optimistic. If they want to increase their enthusiasm for replenishing warehouses, they still need to see the terminal demand improve. Before this, glass fundamentals are difficult to improve for the time being. However, after the current price difference in the glass area has widened, it cannot be ruled out that the subsequent recovery of production and sales in the core area will drive the market rebound.

market outlook

This week, the operating rate of the soda ash market was slightly adjusted, but the overall start-up of enterprises was at a high level. With the consumption of inventory in the downstream market, shipments of some soda plants increased. Enterprises mainly replenished warehouses appropriately, and the soda ash market gradually rebounded. After the floating glass market continued to decline, the market decline slowed down and was mostly stable, but the demand side did not improve significantly. It is expected that the float glass market price will be stable and weak in the short term.