3.18 Glass Daily Review: Float Glass Market Narrowly Declined

Float Glass Market Price

Float Glass Market Analysis
Today, the domestic 5mm float glass market price fluctuated in a narrow range. Among them, the production and sales in East China were weak, the price was loose, the downstream purchasing willingness was low, and the overall market demand was flat; the order performance in the southwest region was average, the price was reduced by 20 yuan/ton to 1240 yuan/ton, and the manufacturer's shipment was relatively poor; the price of 5mm large plates in Shahe, North China continued to rise slightly, and the market trading was still good; the quotations in other regions were temporarily stable, and the overall transaction atmosphere was still weak. The current float glass market supply is relatively abundant, while the demand side is average. Downstream companies maintain on-demand procurement, and the market is in a wait-and-see mood.

Futures Dynamics
According to Boduoduo data: On March 18, the opening price of the main glass contract FG2505 was 1177 yuan/ton, and finally closed at 1158 yuan/ton, with a daily increase of -1.28%. The highest intraday price was 1,192 yuan/ton, the lowest was 1,156 yuan/ton, and the position was 1,575,761 lots, up 24,235 lots from the previous month.

Today, the price of glass futures fell sharply from the high. In the short term, some glass factories in the main production and sales areas still have the willingness to support prices. However, the actual demand has not yet shown a large-scale repair in the short term. The downstream is relatively limited in its willingness to accept price increases, and the current midstream inventory is still strongly suppressed by the market. After the rebound of the futures price, the profit growth of low-priced goods delivery has also attracted new hedging funds. In the short term, we will temporarily wait and see the demand recovery in the subsequent peak season.

Market Forecast
The subsequent float glass market still has production line ignition plans, and the supply side is relatively abundant; while the downstream has a small amount of rigid demand replenishment, and some glass companies have raised prices to explore the market due to profit compression, but demand support is limited. In the short term, it is expected that the float glass market may continue to consolidate.