Float glass prices fall in the second half or fall

In recent years, float glass has been unsalable throughout the country, and prices have dropped significantly. In this regard, the industry believes that due to overcapacity of float glass and rigid demand is difficult to ease in the short term, the second half of the industry boom will enter a downward cycle.

It is reported that in the near future, Shahe in Hebei Province reduced the total number of float glass by 6 yuan/weight, Hunan and Hubei lowered 4 yuan/weight, Zhangjiagang, Jiangsu lowered 4 yuan/weight, Anhui Province lowered 3 yuan/weight, Shandong Giant The discount rate is 2-3 yuan/weight box. At the same time, the glass manufacturers are light and stocks are high.

In fact, the reporter learned that the downward trend in plate glass prices has become apparent since May. By the end of June, the glass price index was 77.3, down 8.7% year-on-year, and down 9.7% month-on-month.

According to industry insiders, due to the rapid expansion of flat glass production capacity, the price of glass products has significantly decreased after entering May. As the overcapacity is hard to ease in the short term, the industry boom in the second half of the year will enter a decline cycle.

However, people in the industry also pointed out that the current price of glass-related upstream raw materials such as soda ash and heavy oil has shown a slight upward trend. Some glass manufacturers have already reached their current prices with low prices. There is no profit at all, and they are supported by rising costs. There is little room for future glass prices to fall.

According to statistics from related agencies, as of late June, the price of heavy oil in North China was 4,350 yuan/ton, up by 24.3% year-on-year and 2.2% month-on-month. Soda ash prices fell slightly after continuous rise, and the price of high-end heavy soda ash in East China was 2,100 yuan/ton. It increased by 50% year-on-year, and remained unchanged month-on-month. Light soda ash reached 2,200 yuan per ton, a year-on-year decrease of 6.7%. The phenomenon of heavier and lighter prices was continuously eliminated.

Analysts bluntly pointed out that the current glass market concentration is still low, a large number of new production capacity is ongoing, taking into account the total production capacity after the elimination of backward production capacity at the end of 2011 increased to 94 million weight boxes, corporate profitability has been a huge test.