Positive macro expectations boosted the spot market to stop falling and stabilize during the week (5.9 Floating Glass Weekly Review)

Positive macro expectations boosted the spot market to stop falling and stabilize during the week (5.9 Floating Glass Weekly Review)

1. Analysis of the float glass market

China's 5mm float glass market fell first and then stabilized during the week. In terms of price comparison, China's float glass market fell slightly this week, with the reduction range concentrated at 10-30 yuan/ton. The meeting of the Political Bureau of the CPC Central Committee deployed real estate work, focusing on digesting existing real estate and optimizing incremental housing. Some regions introduced and optimized real estate policies, which formed positive support for the float glass market. Glass futures prices were operating strongly, forming certain positive feedback on the spot market; Although the ex-factory quotation after returning from the holiday dropped month-on-month before the holiday, with the strong operation of futures prices, spot prices have stabilized simultaneously. The fly in the ointment is that inventory circulation is mostly between the middle and upper reaches. In the short term, we can pay attention to the positive feedback of macro policy expectations to the market. The sustainability of the demand side.

In terms of futures, glass continued its narrow rebound during the week. After the holiday, the glass futures market as a whole maintained a strong operation. Various factors such as cold repair production line cashing, policy support, and cost increases pushed futures prices to continue to rise to premium prices, which stimulated midstream arbitrage sentiment in the spot market, which led to a sharp rebound in spot production and sales. Manufacturers took advantage of the trend to increase their quotations, and positive feedback between futures and current prices formed a resonant upward situation. In the follow-up, it is necessary to observe when the middle and lower reaches weaken, which may then form strong selling pressure on the disk.

2. Comparison of float glass market prices

3. Float glass inventory

The total inventory of float glass manufacturers this week was 61.206 million heavy boxes, compared with 61.816 million heavy boxes last week, a decrease of 610,000 heavy boxes from last week, a range of-0.99%. After the holiday, the inventory of floating glass declined slightly.

4. Weekly operating rate of float glass

This week, the weekly operating rate of float glass was 84.45%, a month-on-month period of-0.09%.

5. Weekly float glass output

This week, China's glass production lines totaled 304 after eliminating zombie production lines, of which 256 were in production. The float glass output was 1.2229 million tons, a month-on-month and a year-on-year period of +7.94%.