Margin improvement in float glass market fundamentals

Margin improvement in float glass market fundamentals

Float glass market price

Analysis of float glass market

Today, China's 5mm float glass market is generally stable and improving. Prices in Southwest and South China have increased by 20 yuan/ton, shipments have accelerated, and the market trading atmosphere has been active; the focus of transactions in East China has continued to move upward, and shipments have been better; while market sentiment in Shahe region in North China has weakened slightly, with 5mm small plates The price was slightly lowered by 4 yuan/ton to 1124 yuan/ton. At present, downstream demand is showing signs of recovery, and purchasing enthusiasm is increasing, which has led to a gradual improvement in the fundamentals of the spot market.

Float Glass Index Analysis

According to data from Boduo, the float glass price index on November 1 was 1,236.58, up 1.76 or 0.14% from the previous working day.

Futures dynamics

According to data from Boduo, the opening price of FG2501, the main glass contract, on November 1, was 1386 yuan/ton, and finally closed at 1369 yuan/ton, an increase of 0.07% within the day. The intraday high was 1372 yuan/ton, the lowest was 1337 yuan/ton, holding 1154835 lots, a month-on-month +1236 lots.

Today, glass futures prices remained mainly volatile in a narrow range. The core logic of glass at present is that the market will begin to repair profits after the supply side clears and improves its own fundamental logic. However, futures prices will continue to surge after recovering to the cost range, which may disrupt the supply side cold repair path and lose support for fundamental improvement. Therefore, glass is currently experiencing strong shocks and waiting for the implementation of policies and whether actual demand can continue to improve. If the demand side can cooperate simultaneously, glass may continue to rise and break through costs.

market outlook

Expectations for supply contraction in the float glass market have gradually increased, and the overall market atmosphere has improved; after market sentiment subsides, downstream procurement is expected to slow down. In the short term, the spot market will mainly operate steadily, with some maintaining a slight increase.