In May 2021, the domestic float glass market saw a strong upward trend. Driven by effective demand, market confidence and purchasing sentiment were good, overall supply and demand were slightly tight, and prices rose significantly. The real estate sales data continued to improve, and the demand for float glass was strong as a result of increasing requirements for energy conservation and environmental protection in buildings. In May, the production capacity was released at 1,800 tons/day, and the cold repair capacity was 700 tons/day. At the end of the month, the actual effective production capacity increased by 1,100 tons/day from the previous month; the new ignition and re-production ignition production capacity was 2,100 tons/day. The release of production capacity will affect the market supply in June.
In June 2021, the domestic float glass market is expected to enter a stable period, and the boom in supply and demand is expected to maintain, and low-level inventory will promote a steady and slow rise in market prices. At the macro level, affected by the domestic and foreign environment, short-term domestic policies have maintained a smooth transition, the overall economic environment has improved, the epidemic in Europe and the United States has been controlled, and exports have maintained steady growth. At the supply level, under the constraints of new flat glass production capacity, short-term production lines are actively resumed, and production lines are postponed after the kiln age has expired, which pushes production to a peak. However, from the perspective of market conditions, the tight supply situation has not changed. . At the demand level, driven by high starts and high sales, the continued strong cycle of real estate completion expectations, the country's continued attention to commodity prices, and the stability of the prices of major raw materials in the construction industry will help the real estate industry to develop healthily and steadily.
In June 2021, the East China regional market is expected to continue its steady and upward trend. The downstream processing engineering orders are in good condition in terms of demand, and the price transmission effect is obvious. As the national price peak, the East China region can still continue to drop the warehouse. In addition, due to the relationship between supply and demand, the characteristics of the float glass market in the low and peak seasons are gradually fading, and the peak is reduced. The valley effect makes the market more continuity. In terms of supply, the East China region is expected to release 1,400 tons of production capacity per day. There is no cold repair plan for the production line. The actual effective production capacity is expected to increase in June; there is no new ignition and re-production ignition plan within the month. Based on the high base level at the end of May, the East China regional price index of float glass is expected to rise significantly from the previous month in June 2021.
