The national glass market has retreated after two months of gains.
Recently, North China took the lead in price reduction, generally 20-30 yuan/heavy box, other areas temporarily stable. This week the national float glass price of 1680 yuan/ton; The price in North China is 1,650 yuan, which is -1.79% compared with last month.
Since the optimization of epidemic prevention policies in December last year, pent-up demand has begun to be released. With the continuous improvement of the real estate policy, the glass inventory began to be destocked, which continued until the Spring Festival. On December 8, the total stock of float glass in China was about 72,821 million heavy boxes, but as of January 19, the total stock of float glass sample enterprises in China was 64,327,000 heavy boxes, and the inventory decreased by 8,494,800 heavy boxes within two months.
After the Spring Festival holiday, although the inventory rose to 77.808 million heavy boxes, but affected by macro expectations, even in the downstream processing plant demand is not clear, the market trading atmosphere is still strong. The first week of the year. This week, the glass inventory was -1.28%, and the glass price rose from 1627 yuan/weight box at the end of the year to 1677 yuan/weight box.
Last week, however, the destocking trend reversed.
As of February 9, float glass output of 1,111,500 tons, week on week +0.63%, Shahe factory inventory increased to about 8.8 million heavy boxes; Production and sales of raw tablet manufacturers in East China account for 50%~80%; China's middle and downstream rigid need to purchase; South China downstream procurement caution. Market wait-and-see sentiment continued, the overall performance of production and sales flat. The lack of downstream deep processing orders and the overall decline in the market under the condition of high inventory are the main reasons for the market trend correction this week.
Many people in the industry began to worry that the glass market in 2023 will repeat the old drama bone in 2022.
Looking back to 2022, the first quarter rose and then fell, with the average price in the range of 2000-2500 yuan/ton, and the industry still has reasonable profit space. The market continued to decline in the second quarter, remained relatively flat in the third quarter, and began to decline again in the fourth quarter.
As a result, weak demand and high inventories are the main features of the 2022 floating French glass spot market leading to volatility.
