Float glass market price weakness lowered

Float glass market price

Analysis of float glass market

Today, the domestic 5mm float glass market continues to operate weakly. Among them, float glass market prices in Northeast China, Central China, South China and North China were all lowered by 10 yuan/ton, and deep processing orders did not show significant improvement; while the transaction volume of 5mm plate float glass in Shahe area of North China decreased slightly month-on-month, and prices all fell; the quotations of manufacturers in the northwest region were significantly loose, and they were lowered by 30 yuan/ton to 1430 yuan/ton; glass companies in other regions were weak, and prices followed suit. The current float glass market demand has shown a phased decline, while the supply side is rigid, manufacturers 'inventory pressure has increased, and the price center of gravity has continued to move downward.

Float Glass Index Analysis

According to data from Boduo, the float glass price index on August 20 was 1,289.35, down 4.18 from the previous working day, with a range of-0.32%.

Futures dynamics

According to data from Boduo, the opening price of FG2501, the main glass contract, on August 20, was 1273 yuan/ton, and finally closed at 1295 yuan/ton, an increase of 1.17% within the day. The intraday high was 1303 yuan/ton, the lowest was 1269 yuan/ton, holding 637703 lots, a month-on-month period of 18754 lots.

Today, the main contract price of glass futures fluctuated mainly with the strong market environment. Glass's own fundamentals have not improved significantly recently. Production and sales in the spot market are still lukewarm, and spot prices continue to decline. However, the glass supply side has also entered the early stage of production capacity clearing despite continued losses. The decline in the supply side has offset the decline in the demand side to a certain extent. However, the overall supply and demand relationship is still loose, and terminal demand is temporarily difficult to improve. Glass lacks a strong upward drive. In the short term, we can focus on whether the overall commodity market sentiment can continue to pick up and drive glass to rebound further.

market outlook

The supply in the float glass market remains relatively high, but downstream demand remains weak and has not seen significant improvement; before a new round of replenishment demand is released, it is expected that spot market prices may continue to consolidate within a narrow range in the short term.