2.5 Glass Daily Review: Float glass market price rose slightly

Float glass market price

Float glass market analysis
Today, the domestic 5mm float glass market price rose slightly. Among them, the float glass market price in the southwest region rose slightly, the market gradually resumed after the holiday, and the downstream demand recovered slowly; the market trading in North China gradually recovered, and the price increased by 10 yuan/ton, but the glass manufacturers in Shahe area did not ship smoothly, and the market sentiment was affected and the price fell. Overall, some production lines on the supply side of the float glass market are still in a cold repair state. As the trading gradually resumed after the holiday, some companies have the intention to promote sales by raising prices; however, during the Spring Festival, some companies had sufficient inventory, and most manufacturers' quotations remained stable. The overall market is still in a wait-and-see state, and the demand recovery process is slow.

Futures dynamics
According to Boduoduo data: On February 5, the opening price of the main glass contract FG2505 was 1,336 yuan/ton, and finally closed at 1,328 yuan/ton, with a daily increase of -3.49%. The intraday high was 1,358 yuan/ton, the low was 1,322 yuan/ton, and the position was 732,833 lots, up 89,326 lots from the previous month.

Today, the price of glass futures increased significantly and fell. The main reason may be that the upstream accumulated inventory during the holiday, and the pressure of accumulated inventory in the midstream driven by speculative demand before the holiday formed a strong selling pressure on the premium. On the other hand, the weakening of domestic economic data in January also led to a weakening of macro sentiment support. In the short term, under the premise that the actual resumption of work in the downstream is not satisfactory, the actual demand is difficult to take over the midstream inventory, and the glass price may be temporarily viewed as weak. However, given that the logic of glass's own fundamental improvement still exists, the manufacturer's inventory pressure is not great, and the current price valuation is not high, the space for further downward movement may be temporarily limited, and we will wait and see the subsequent actual demand recovery and the start of the macro policy market.

Forecast for the future market
The supply of float glass market remains high, the market transaction is weak after the holiday, the downstream demand has not yet started in an all-round way, and the market atmosphere is slightly cold; there are price increase plans in some regions, but the overall market demand recovery is slow, and prices are expected to be stable in the short term.

Data source: Boduoduo Data Group