The spot market has improved and the market has become more emotional (5.30 Floating Glass Weekly Review)

The spot market has improved and the market has become more emotional (5.30 Floating Glass Weekly Review)

1. Analysis of the float glass market

China's 5mm float glass market has adjusted within a narrow range, but regional differences still exist. In terms of price comparison, prices in the Southwest, Central and South China markets have loosened and declined, with the downward adjustment concentrated at 10-40 yuan/ton; the North China market has increased by 20 yuan/ton to 16208 yuan/ton; and the price of Shahe 5mm large board has increased to 1504 yuan/ton. During the week, the spot market continued to be strong in the north and weak in the south, and the performance of production and sales was mixed. Changes in inventory also showed a decline in the north and an increase in the south. Demand for downstream orders has not yet shown a substantial improvement. In addition, the impact of real estate policies is gradually being transmitted to various places. In addition, within a week, the State Council issued a notice on issuing the "2024-2025 Action Plan for Energy Conservation and Carbon Reduction" to promote energy conservation and carbon reduction in the building materials industry and boost market sentiment. However, given that the document is an old case, the actual impact on the current spot market will be limited, and it will be difficult to continuously drive the market.

In terms of futures, glass remained high during the week and was dominated by wide fluctuations. The macro sentiment driven by the previous real estate policy has cooled down. Although the impact on actual demand has been limited, the support for glass demand expectations is relatively obvious. The combined glass supply side continues to decline, showing a marginal advantage. The overall glass price is running at a high level, and the market in the core production and marketing area is more likely to form a positive feedback market when the futures price rises. In the short term, although the actual demand for glass itself has limited improvement, it is temporarily not enough to form a new one. Negative driving, short-term or maintaining high shocks and waiting for new market trading points.

2. Comparison of float glass market prices

3. Float glass inventory

The total inventory of float glass manufacturers this week was 59.319 million heavy boxes, compared with 59.62 million heavy boxes last week, a decrease of 301,000 heavy boxes from 59.319 last week, a range of-0.50%. During the week, the weekly inventory of float glass manufacturers declined. Production and sales data in the northern region were better, and inventories fell; the improvement in trading atmosphere in the southern market was relatively limited.

4. Weekly operating rate of float glass

This week, the weekly operating rate of float glass was 83.45%, a month-on-month rate of 0.28%. The overall operating rate increased slightly.

5. Weekly float glass output

This week, China's glass production lines totaled 303 after eliminating zombie production lines, of which 253 were in production. Float glass output was 1.2033 million tons, 0.00% month-on-month and 5.01% year-on-year.