Crazy glass! Float glass prices hit a record high, glass manufacturing performance may exceed expectations
The glass industry continues to be booming, and the performance of listed companies in the industry in the first half of the year is expected to exceed expectations. Kibing Group, the leader in float glass, has disclosed that the net profit attributable to the parent in the first half of the year is expected to increase significantly compared with the same period of the previous year. Many institutions pointed out that under the strong and sustainable real estate completion cycle, they are still optimistic about the float glass market in the second half of 2021. In the future, small and medium-sized enterprises that do not meet the emission standards will accelerate their clearance, and the industry concentration is expected to continue to increase.
Float glass prices continue to rise steadily and slowly in June
According to Longzhong Information, the current mainstream price of white glass in the South China region is 2700 yuan to 2780 yuan/ton, the mainstream market price of high-end glass is 2780 yuan to 2880 yuan/ton, and the mainstream market price of small plates is 2720 yuan to 2740 yuan/ton. The mainstream ex-factory price of float glass in the Zhejiang area is 2930 to 3000 yuan/ton.
After sorting out, it is found that the float glass market price reached a historical high in December last year. At that time, the float glass price in the South China market was close to 2,500 yuan/ton, and that in other regions exceeded 2,200 yuan/ton. From January to February of this year, the market price corrected slightly, and then it has once again entered the upward space. In particular, it started a strong rise in May. Since June, it has risen steadily and slowly, setting a record high again.
Hot demand coupled with capacity constraints is the main reasons for the rising float glass prices. At the supply level, under the restriction of prohibiting the new production capacity of flat glass, although the short-term production line actively resumed production and pushed up the output, it did not change the tight supply situation. At the demand level, real estate demand is strong during the completion period, and terminal orders continue to increase. At the same time, under the carbon peak and carbon-neutral environment, energy conservation and environmental protection policies continue to affect, and the application scenarios and consumption of energy-saving architectural glass continue to increase.
The float glass market is still promising in the second half of 2021. At present, the inventory days of glass companies have been reduced to 8.5 days, which is seriously lower than the historical average of 15.9 days. Glass manufacturers have generally entered a strong cycle. Recently, some glass manufacturers have quoted 3,000 yuan/ton. It is expected that in the third and fourth quarters of 2021 the glass price is expected to remain above 2,600 yuan per ton.
CITIC Securities Research Report pointed out that in 2021, the new supply of float glass industry is limited, and the demand side recovery is highly certain, the price is expected to maintain high operation, and the profitability of the industry is expected to further improve.
