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Glass Industry Research Report

Published:2017-4-6

[network] Chinese glass glass on the market in the first half at present, also in the consumer off-season, the price is also very difficult to get to the inventory, with the demand for glass processing enterprises 4-5 in the northeast and northwest regions and the gradual recovery of the lower reaches of the Yangtze River in rainy season lead to lower purchase demand slowdown, glass is expected spot price rose difficult, glass production enterprises are relatively satisfied with the current price decline, but the space is small, in addition to Shahe and the Great Wall glass safety inventory is high, the goods go smoothly, and other enterprises in Shahe glass inventory is not high, the overall inventory is not high, a substantial price reduction will not high.
About glass supply and demand. The overall supply of stable Shahe, no new capacity, cold repair capacity, demand in the off-season, the recent slight decline in the first half of the balance of supply and demand. Shahe and central China due to the spread of glass in a reasonable range, Shahe glass rarely into Hubei, mainly in Shandong, Henan, Shanxi, Hebei, Jiangsu and Anhui. Central China glass is not directly in competition with Shahe, and the glass is mainly sold to Zhejiang, Jiangsu and other regions, some sold to Southern China, Southern China after the price, the regional balance of price difference, and now less inflow. In other words, Shahe and central China glass in the competition to seize the East China market, leading to Jiangsu and Zhejiang glass inventory has increased, while other regions and the National Glass inventories are gradually declining. In addition, the northeast and Qinhuangdao, such as glass are mainly exported to foreign countries, more and more export volume, the northeast region and Shahe glass spreads smaller, there is no possibility of vicious competition between the two places.
About glass inventory. Shahe area glass overall inventory is not high, individual large enterprise glass inventory is high, but are in the stock of the trend of decline; high inventory, low sheet stocks, especially in the following 2mm ultra-thin facing out of stock. Due to the investigation of different, the difference of glass inventory is very large, which may be closely related to enterprise development strategy or market expectations, some enterprise product quality, brand ring, have some pricing power, may take the price is bound to inventory is also high; some enterprises will adopt low-cost strategy, inventory is relatively low; some enterprises are optimistic about the market outlook that may not have the option to the stock price, some enterprises on the market outlook cautious, may choose to let the shipments; some enterprises may direct a higher proportion of low inventory, some enterprises may sell a higher proportion of high inventory. About the investigator's point of view. In the research process, the researchers point to a neutral glass glass, that price range this year shocks greater probability, volatility is less than last year, the area of glass spot price was mixed, the contradiction between supply and demand in the first half is not particularly prominent in the middle and lower reaches of the psychological game is large, so it does not have the conditions for the second half of the year rose sharply, the situation is not too optimistic, focus on the four quarter demand for off-season glass market performance; glass trade and processors divergence, neutral and optimistic are pessimists also; investment company staff believes that the glass market is not overly optimistic view, nor overly pessimistic, the price of around 1200 yuan / ton line under the shock, fluctuation range between 1150-1350 of course, most do not care about the trend and focus on arbitrage opportunities, especially the warehouse cost, short-term spot prices have cost support 1200 There are more opportunities to do under the line, there is a chance to protect the existence of 1400 lines above.

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