3.21 Glass Daily Review: Float Glass Market is Stable and Weak

Float Glass Market Price

Float Glass Market Analysis
Today, the domestic 5mm float glass market is stable and weak. The demand side in North China is tepid under the drag of real estate, and the price is temporarily stable; enterprises in many regions have maintained stability after giving discounts, and although shipments have increased compared with the previous period, the overall demand is lower than expected, and downstream purchases are mainly based on rigid demand. The current supply and demand contradictions in the float glass market still exist, and the market sentiment is general. Float glass plants in most regions are still mainly based on reducing inventory for shipments; the downstream start-up has not changed much, but new orders are slow to follow up, and the willingness of factories to replenish inventory is low, and raw materials are mainly purchased based on rigid demand.

Futures Dynamics
According to Boduoduo data: On March 21, the opening price of the main glass contract FG2505 was 1,176 yuan/ton, and finally closed at 1,173 yuan/ton, with an intraday increase of 0.09%. The highest intraday price was 1,179 yuan/ton, the lowest was 1,155 yuan/ton, and the position was 1,536,709 lots, down 5,998 lots from the previous month.

Today, the overall glass futures price bottomed out and rebounded. On the one hand, it was driven by the weakening of the overall market macro sentiment. On the other hand, although the demand for glass itself is gradually recovering, it is difficult to see large-scale acceptance in the short term. The inventory pressure in the middle and upper reaches is still large. After the main contract is close to delivery, it is necessary to pay attention to the actual changes. However, the expectation of demand improvement in the subsequent peak season still exists, and the atmosphere of the spot market has marginal improvement. In the future, attention will be paid to whether the sustainability of demand and the growth slope support a strong repair market before the delivery of the main contract.

Market Forecast
There are still production line ignition plans in the subsequent float glass market, and the supply side is relatively abundant; as the specific plans for stabilizing the real estate market in various places are gradually promoted, demand expectations are positive; the quality of "Golden March and Silver April" needs to be verified, and it is expected that the float glass market will continue to consolidate in the short term.