Float glass market continues to have weak fundamentals

Float glass market continues to have weak fundamentals

Float glass market price

Analysis of float glass market

Today, the domestic 5mm float glass market continues to be weak. Among them, float glass market prices in Northeast China, East China, North China and South China have been lowered by 10-30 yuan/ton, and prices of enterprises in other regions have temporarily stabilized. However, the focus of transactions of 5mm large-plate float glass in the Shahe area of the North China market has declined, and terminal demand has not yet recovered; the Beijing-Tianjin-Tangshan area has dropped by 20 yuan/ton to 1420 yuan/ton. The downstream procurement situation is general, mostly based on just-needed needs, and market prices are still under pressure. Although the supply of float glass market has a downward trend, it is still at a high level and volatile; the downstream is mostly in a wait-and-see or on-demand purchasing state, and demand support is limited; while the contradiction between supply and demand in the market intensifies, float glass prices are still falling.

Float Glass Index Analysis

According to data from Boduo, the float glass price index on July 22 was 1,356.8, down 7.40 from the previous working day, with a range of-0.54%.

Futures dynamics

According to data from Boduo, the opening price of FG2409, the main glass contract, on July 22, was 1439 yuan/ton, and finally closed at 1428 yuan/ton, an increase of-1.18% within the day. The highest intraday session was 1450 yuan/ton, the lowest was 1410 yuan/ton, holding 779189 lots, a month-on-month period of-9812 lots.

Today, glass futures prices mainly fell due to the market environment and related commodities. The glass spot market still continues to be dominated by negative feedback transmission, with production and sales weak and stable, and quotations lowered. On the basis of no continuous improvement in actual demand, the glass market may still be difficult to improve in the short term. However, policy support for the real estate industry has continued to increase in the near future. There may still be expectations for subsequent Politburo meetings. We can observe whether sufficient stimulus policies can be given at that time. Before that, the policy side may temporarily focus on stability, and the commodity market or wide-range shock game waiting.

market outlook

The situation of strong supply and weak demand in the float glass market has not been alleviated, and cost support is insufficient; macro positive factors are still unclear; market prices may continue to fall under pressure in the short term, and the spot market remains weak.