3.14 Glass Daily Review: Float Glass Market is stable but weak

Float Glass Market Price

Float Glass Market Analysis
Today, the domestic 5mm float glass market prices are stable and falling. Among them, the price in the central China market was reduced by 20 yuan/ton. Affected by the industry profit compression and the weak market operation, the downstream wait-and-see sentiment has intensified and the transaction volume has shrunk; some areas in South China were affected by the rainy weather, rigid demand purchases were hindered, manufacturers shipped poorly, and prices fell narrowly; other regions' quotations are mainly stable, and manufacturers negotiate prices flexibly to promote transactions. At present, the supply of float glass market is relatively abundant, low-priced resources are dominant, the demand side is flat, the downstream maintains the rhythm of on-demand purchases, and the overall trading atmosphere is weak.

Futures Dynamics
According to Boduoduo data: On March 14, the opening price of the main glass contract FG2505 was 1,150 yuan/ton, and finally closed at 1,163 yuan/ton, with a daily increase of 1.22%. The highest intraday price was 1,168 yuan/ton, the lowest was 1,143 yuan/ton, and the position was 1,534,991 lots, down 16,688 lots from the previous month.

Today, the price of glass futures rebounded slightly, mainly because of the impact of the news of the reserve requirement ratio and interest rate cuts, and some short-selling funds left the market for risk aversion. However, in the short term, the fundamentals of glass itself still do not have the conditions for a sharp rebound, and the core contradiction of insufficient demand is still difficult to effectively solve. In the future, we will focus on the sustainability of this round of macroeconomic sentiment and whether the problem of demand repair in the peak season can bring marginal improvement to the glass market.

Market Forecast
The production lines that were ignited in the early stage will release production one after another, and the supply will remain at a high level; while the downstream has a small amount of rigid demand for replenishment, and the enthusiasm for taking goods is limited, waiting for new drivers; in the short term, it is expected that the float glass market will still be weak.