The rise in glass market prices after the Spring Festival is caused by various reasons:
1) The market price of soda ash continues to rise
The soda ash in 2022 is generally higher than in the past two years. The main influencing factor is the change in effective production capacity. Although there are currently 38 companies, not all of them are in production. There are some zombie production capacity and the withdrawal of zombie production capacity. 33.55 million tons and the current effective production capacity in 2022 is 30.95 million tons.
2) Capacity limitation of glass factories
Since glass production will have a certain impact on the environment, it is restricted by environmental protection policies, thus limiting the output. On the supply side and environmental pressures, the glass industry has entered a centralized cold repair period, resulting in a limited increase in the supply side.
3) The real estate industry is picking up, and the overall market demand is increasing
70% of the glass demand comes from the real estate market, and the gradual recovery of the real estate market will have a positive impact on the glass market.
