The hottest inventory pressure increases, and the

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Since the Qingming Festival holiday, the domestic glass spot market as a whole has seen a sluggish transaction and the price has continued to fall. In particular, the price of Shahe glass, one of the important "weathervanes" of the industry, has been collectively lowered, further aggravating market concerns

Shahe glass collective price reduction

Shahe glass prices began to shake at the end of March, and then the glass prices across the country continued to be affected. According to the data of China Glass information, as of yesterday, the prices of 4mm glass in Hebei Daguang, Shahe safety, Hebei Southern glass and Hebei run'an fell by 16-20 yuan/ton compared with the previous day, and the scrap week fell by 40-60 yuan/ton

"large new production capacity, sales resistance, and inventory recovery have made Shahe area E. experimental software: Chinese Windows interface glass recently set off a 'wave of price reduction'." Wu Yanmin, head of the futures Department of Jiajing glass company of Hebei Daguang group, told futures that after the Spring Festival this year, two glass production lines have been ignited in Shahe area, with a total daily output of 1900 tons, and at least two production lines will be ignited in the future, which greatly increases the pressure on production capacity. At the same time, due to the unsatisfactory demand for glass in building materials and real estate in spring, there were relatively few downstream orders at the beginning of the year, the digestion of supply was slow, and the rigid demand support was weak. Affected by this, traders' bearish attitude towards the future market gradually occupied the mainstream, and their purchase enthusiasm weakened, which made manufacturers obviously feel the inventory pressure. "Glass prices fell again after rising in the early stage. Now, destocking has become a recent problem for Shahe glass."

it is understood that the collective price reduction of glass in Shahe region has lasted for a week, and the shipment situation in the local market has slightly improved after several days of price decline. "Since yesterday, the number of vehicles carrying goods has increased." According to the sales staff of Shahe Xinli glass, the current sales situation has improved due to the continuous price reduction. However, in Wu Yanmin's view, despite this, the overall sales are still unsatisfactory, the inventory pressure is great, most glass enterprises in Shahe area are in low mood, and the market anxiety mentality is increased

local prices follow the trend

the collective price reduction of glass in Shahe region makes other regional markets start to worry about the impact of low-cost glass in Shahe on the local market, and also reduce the price with Shahe. It is understood that at present, glass prices in East China, South China, central China and Northwest China have also been reduced by 8-23 yuan/ton

"because Shahe government has considerable preferential policies for local glass enterprises, Shahe glass has a very large cost advantage compared with other regions, and the price reduction of Shahe glass is bound to affect the glass market all over the country." Li Pengfei, an analyst at Zhongyuan futures, said that at present, Shahe glass has entered Shandong, causing the production and sales of local glass manufacturers to decline and prices to begin to loosen

huangguiliang, an analyst at China International Futures, said that since March, frequent rainy weather in Guangdong has affected the construction process. The next is a part of the revolutionary exploration of using nanotechnology to benefit the industrial process. The willingness to purchase is weakened. Glass prices have continued to fall since hitting a high in early March, and the price reduction tide in Shahe region has further suppressed local prices

the rebound range of futures price is limited

"from the current situation, the leading wave of glass' Yangchun 'market this year has passed." Jia Qiuyi, deputy director of Yide futures industrial products research and development center, believes that on the one hand, the manufacturer's price has been raised too fast in the early stage, and the circulation channels and processing enterprises have generated a certain degree of resistance. On the other hand, the 'five national policies' have suppressed house prices, which has a great drag on market confidence in the short term, leading to a slight decline in the glass market price

it is worth noting that while the spot price of glass has been weak recently, glass futures have shown strong performance. "Glass fell too much in the early stage, and a certain technical adjustment is needed in the short term." Jia Qiuyi believes that under the background of strict control of real estate, it is difficult for the downstream demand of glass to improve. Coupled with the pressure of continuous release of production capacity, the rebound range of futures prices will be limited. The content of this article is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk

China glass () Department

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