According to the monitoring of SunSirs, the glass price was basically stable last week, and the rising trend was slow. At the beginning of the week, the average price of glass was 23.53 RMB /m2, and that of the weekend was 23.57 RMB /m2, with a slight increase of 0.17%.
Market analysis
In the previous week, glass prices were basically stable, and the rise slowed down. Last week, Shahe in North China, market prices remained stable; manufacturers inventory was at a low level, the market transaction situation was good. The transaction situation of East China market was good, the market was stable, the quotation of some manufacturers rose slightly, and the price of glass spot products increased by about 0.2-0.3 RMB /m2. Production enterprises in South China maintained a normal level of stock out, and the market turnover was good. Export orders also improved to a certain extent. The price of spot glass products increased by about 0.2-0.4 RMB /m2. Spot prices in Central China were basically stable. The spot price of glass in Southwest China increased by 0.2-0.3 RMB /m2. The price of spot products in Northwest China increased by about 0.3 yuan / m2, and the market reaction was moderate. The orders of local processing enterprises in Northeast China were dominated, and the price of spot glass products increased by about 0.2-0.3 RMB /m2.
In terms of production capacity, there was no new capacity or cold repair shutdown last week. According to the data of the industry association, on August 28, 2020, the industry's inventory was 40.28 million heavy containers, an increase of -1.38 million heavy containers compared with last week, and an increase of 2.24 million heavy containers compared with last year. The number of weekend inventory days was 15.53 days, with an increase of -0.53 days compared with the previous and a year-on-year increase of 0.73 days. On August 28, 2020, the glass production capacity utilization rate was 68.96%; the glass production capacity utilization rate increased by 0.00% on a month on month basis, and increased by -1.35% compared with last year; after excluding the excess capacity, the glass capacity utilization rate was 81.73%, up 0.00% on the previous week and -1.95% on a year-on-year basis. The glass production capacity was 946.62 million heavy boxes, an increase of 0 million heavy boxes compared with the previous week, and an increase of 8.52 million heavy boxes compared with last year.
In terms of raw material soda ash, according to SunSirs, in the previous week, the soda ash manufacturers increased the price of light alkali by 200 RMB/ ton, and heavy soda by 400 RMB/ ton. In terms of petroleum coke, the coke price in the local refining petroleum coke market maintains a small upward trend due to the tight supply of resources. It is expected that there will still be a small rise in the petroleum coke market in the later stage, and the overall high-level consolidation market is the main operation.
Market Forecast
According to the forecast of SunSirs, the rise of glass price slowed down last week, mainly stable. There is no pressure on the inventory of enterprises, the orders of downstream traders and glass processing enterprises are fair, and the number of export orders is slightly increased. The price of soda ash in the upstream is rising rapidly, which is not conducive to the cost stability of glass production enterprises. Overall, China glass market is expected to be bullish in the later period.
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