Last week, the glass spot market intensively raised prices, and the glass spot market began to bottom out. As of December 28, the average price of the national float glass market was 1,581 yuan/ton, which has risen for 4 consecutive days. Just yesterday, glass futures also hit a new high in 5 months.
What is the reason for the glass spot to set off a wave of price increases? Zhang Linglu, a senior analyst at Everbright Futures Resource Products, told reporters that the price increase was mainly driven by the improvement in production and sales of the glass market. Since mid-December, glass production and sales in various regions have continued to rise, and most regions can exceed 100%, while some regions such as Shahe For several consecutive days, the production and sales have maintained at 150% or above. The production and sales in the southwest, northwest, and east China regions are relatively weak, but the national comprehensive production and sales can also maintain more than 100%.
According to Zhang Linglu's analysis, the price increase is still due to the improvement of market confidence, and the demand for stockpiling and speculative demand are the main logic. On the one hand, the market has strong expectations for the recovery of the domestic economy. At that time, the real estate sector is expected to come out of the trough, driving the recovery of demand for glass and other real estate back-end building materials. Under this expectation, the mentality of the middle and lower reaches has changed from pessimistic to optimistic about the market outlook, so the enthusiasm for purchasing has also continued to increase. On the other hand, although it is currently the peak season for glass demand, it is still in the traditional winter storage cycle of the glass market, especially in the Shahe area where traders are actively replenishing their warehouses. It is understood that the current glass winter storage progress of traders is about 60%, but most of them maintain a progress of about 40%-50%. Therefore, there is still demand for winter storage in the short-term market as support, and the price performance is still relatively strong.
