The fundamentals are not optimistic. The downward channel continues to open

The fundamentals are not optimistic. The downward channel continues to open

Float glass market price

Analysis of float glass market

Today, China's 5mm float glass market has continued to decline, with the downward adjustment concentrated at 20-60 yuan/ton. Prices of floating glass in Northeast, Southwest, East and Northwest regions are relatively stable. The market price of 5mm large plate float glass in North China has been declining for several consecutive days, with a drop of 20 yuan/ton. The floating glass market in Shahe area in the region is not optimistic. Manufacturers 'shipment performance is poor. Among them, the market price of 5mm small plate float glass in Shahe has dropped significantly, with a drop of 60 yuan/ton. Manufacturers have continued to cut prices; Beijing-Tianjin-Hebei lowered prices by 20 yuan/ton. South China 5mm The large-board floating glass market has been lowered by 50 yuan/ton, and downstream purchasing mentality has been cautious. Manufacturers in Central China have less sales, and some companies have reduced prices and promoted sales.

Float Glass Index Analysis

According to data from Boduo, the float glass price index on March 7 was 1,739.68, down 27.69 from the previous working day, or 1.57%.

Futures dynamics

According to data from Boduo, the opening price of FG2405, the main glass contract, on March 7, was 1650 yuan/ton, and finally closed at 1616 yuan/ton, an increase of-1.16% within the day. The intraday high was 1667 yuan/ton, the lowest was 1608 yuan/ton, holding 652962 lots, a month-on-month +34450 lots.

Today, the glass panel opened higher and lower with the market environment, and accelerated its diving in the late session. Glass has recently been mainly affected by cost-linked commodities, and it is still in the realistic logic of strong supply and weak demand, and has not seen policy support beyond expectations. In the short term, the profit level of glass is still acceptable, the supply remains high and stable, the mentality of downstream replenishment is still dominated by just demand, and the enthusiasm of downstream replenishment still needs to see the resumption of work in the terminal market improve. Before that, the fundamentals of glass are temporarily difficult to explain. Reverse. However, the current market is supported by marginal costs, so we need to pay attention to whether spot performance can provide further downward drive, and we need to be wary of intensifying fluctuations following the trend of related commodities.

market outlook

The upstream soda ash market is operating in a weak position, with a slight decline in operating rates, but corporate inventories remain at a high level, and the market wait-and-see attitude remains unchanged. The floating glass market has continued to decline in recent days, with low enthusiasm for purchasing goods on the market, weak demand performance, and not optimistic about the fundamentals of the glass market. It is expected that the short-term downside risks in the float glass market price will still exist.