In the first three quarters of 2022, the glass industry is facing greater operating pressure, with a substantial reduction in glass production capacity, and the industry is still facing the unfavorable situation of weak demand, high inventory and deep losses.
As of September 15, there were a total of 304 float glass production lines in the country, 254 of which were in production, with a total daily melting volume of 168,840 tons. The production capacity in the third quarter decreased by 6,285 tons compared with the end of the second quarter, a decrease of 3.6%. Since the beginning of this year, the inventory of glass manufacturers has been rising; in late July and early August, traders and glass deep-processing enterprises temporarily replenished inventories at low prices to cope with the possible peak season, which led to the destocking of manufacturers, but downstream demand has not yet started. Downstream procurement lacks stamina Since then, the inventory of glass manufacturers has rebounded for four consecutive weeks. As of September 15, the total inventory of production enterprises in key monitored provinces was 66.81 million weight cases, a decrease of 4.48 million weight cases, or 6.3%, from the historical high of 71.29 million weight cases at the end of the second quarter.
Since the beginning of September, in addition to factors such as the unexpected cold repair of the glass production line on the supply side and the implementation of the carbon peaking plan in the building materials industry, favorable changes on the demand side are an important driving factor. With the passing of the high-temperature weather, the most suitable time for outdoor construction in most parts of the country comes, which is an important basic condition for the "golden nine silver ten" phenomenon in the construction field in previous years. In addition to seasonal factors, since the beginning of September, the market has gradually felt that there has been real progress in ensuring the completion and delivery of sold commercial housing, from policy plans to funding guarantees to supervision and implementation. The substantial resumption of construction of housing projects under construction means that glass deep-processing enterprises will have more orders for doors and windows, and the prospect of continuous improvement in demand for glass production enterprises and effective inventory depletion is expected to become clear. The progress of downstream work resumption before and after the National Day holiday will be an important observation window.
