Glass IndustryMonthly Report

I. Industry News This Month

BOE A: The yield rate of the glass-based packaging substrate test line has not yet reached mass production standards.

People's Finance News reported on June 4 that BOE Technology Group Co., Ltd. (000725) stated during an institutional research visit on June 3 that it will invest 993 million yuan in 2024 to build a glass-based packaging substrate test line. Samples have already been delivered to several domestic customers, with some having obtained conceptual certification and entered the technical testing phase. To date, the company has not yet achieved mass production; this business segment has not generated any revenue from mass production, and the yield rate of the test line remains below mass-production levels, with no clear timeline for improvement.

With a total investment of 1.2 billion yuan, the Suzhou Wujiang Intelligent Screen Display Glass Cover Plate Project has officially commenced operations.

According to Suzhou Wujiang Release, the Yixin Optoelectronics Intelligent Screen Glass Cover Plate Construction Project, with a total investment of 1.2 billion yuan, officially commenced operations on June 8. This project will further strengthen the foundation of the regional new materials industry and inject significant momentum into boosting the development of the real economy.

According to reports, the Yixin Optoelectronics Intelligent Screen Display Glass Cover Plate Construction Project is located in the Wujiang Zhonglu New Materials Industrial Park, covering an area of 78 mu (approximately 5.2 hectares) with an estimated additional construction area of 110,000 square meters. Invested and constructed by Yixin Optoelectronics, a subsidiary of Suzhou Xinwu Optoelectronics Co., Ltd., the project focuses on the research, development, production, and sales of intelligent screen display glass cover plates and precision electronic components. It plans to introduce advanced automated production equipment from both domestic and international sources, with its main products being full-industry-chain 3A (Anti-glare/Anti-reflection/Anti-fingerprint) intelligent screen display cover plates. Upon completion, the project is expected to achieve an annual production capacity of 12 million units, generating an estimated annual output value of approximately 1.2 billion yuan.

Established in 1997, Xinwu Optoelectronics has remained firmly rooted in Wujiang, specializing in industrial manufacturing. In 2013, its anti-glare glass (AG) achieved mass production; in 2015, the company obtained TS16949 automotive system certification; in 2017, its 3A-grade automotive cover glass entered mass production; in 2022, it established a wholly-owned subsidiary, Yixin Optoelectronics, in Pingwang Town; and in 2025, the company successfully listed on the Innovation Layer of the New Third Board. With the commissioning of new projects, the company will further deepen its focus on industrial manufacturing, maintain stringent quality control, enhance technological innovation and production capacity optimization, develop a more competitive product portfolio, and explore vast opportunities in smart display and precision electronics.

"Benxi Yujing Glass acquired the Shanxi quartz sandstone mine for 254.5 million yuan."

On June 24, the Shanxi Provincial Natural Resources Online Trading Platform completed the public auction of exploration rights for the southern quartz sandstone mine in Bajitang Village, Qingcheng Town, Heshun County. Benxi Yujing Glass Co., Ltd. successfully acquired the rights for 254.5 million yuan, exceeding the starting price of 254 million yuan by 500,000 yuan. The auction announcement revealed that the total mineral resources involved amount to 149.143 million tons, with compositions suitable for diverse industries including glass manufacturing and casting. Specifically, the estimated reserves of quartz sandstone for flat glass production stand at 93.658 million tons, while those for mold silicon sand reach 47.057 million tons, complemented by 8.428 million tons of potassium-bearing rock minerals, demonstrating significant advantages in raw material supply. The mining area employs open-pit extraction methods with controllable costs, and the proposed term for the mining rights is five years.

II. Market Analysis of Float Glass

2.1. This Month's Float Glass Market Analysis: Fundamental pressures persist as price levels continue to decline

In June, China's 5mm float glass market exhibited a weak and volatile trend, with monthly price declines ranging from 10 to 40 yuan per ton across regions. Weak demand and high inventory levels remained the primary challenges throughout the month. On the supply side, although production capacity saw localized reductions initially, three new production lines were commissioned in late June, restoring supply pressure and ensuring ample industry stock levels. Enterprises primarily focused on reducing inventory through sales. Demand continued to weaken: real estate project completions failed to meet expectations, downstream processors faced insufficient orders, and factors like the Dragon Boat Festival holiday and persistent rainfall further dampened end-user demand. Midstream and downstream players maintained only sporadic purchases for essential needs amid widespread caution. Inventory pressures persisted throughout the month; while some areas in North, East, and South China experienced minor decreases, overall reduction progress remained sluggish—with only Southwest China showing slight inventory declines by month-end, while all other regions recorded month-on-month increases, indicating sustained high inventory levels. Overall, the float glass market showed no substantial improvement in fundamentals during June, lacking effective demand support. The rainy season exacerbated storage and sales pressures, while price promotions proved ineffective, prompting market participants to remain cautious. Short-term trends are expected to remain weak and volatile, with certain regions likely continuing to rely on price cuts to address high inventory levels. Future attention should focus on the pace of end-user demand recovery and cost dynamics.

The price trend of glass futures shifted significantly downward in June. Although there were two brief rebounds driven by favorable policy measures during this period, neither managed to reverse the overall decline. The central challenge facing the market throughout the month stemmed from a persistent tug-of-war between weak actual conditions and strong market expectations: On one hand, demand remained sluggish during the off-season for the plum rain season, construction activities faced obstacles, deep-processing orders were limited, and slow inventory reduction at high levels continued to exert sustained pressure on prices; on the other hand, worsening industry losses provided cost support, while energy-saving and carbon reduction policies along with environmental protection expectations intermittently boosted market sentiment. Although supply had contracted, the pace of capacity reduction was slow, failing to offset the weakening demand. Overall, weak fundamental conditions dominated the situation, with policy benefits only triggering sporadic rebounds. Until demand improves substantially or inventories are significantly reduced, glass futures are unlikely to escape a pattern of weak fluctuations near the bottom in the short term.

Post-July Market Forecast:

1. Cold repairs and ignition schedules for the production line remain planned, resulting in narrow fluctuations in output;

2、With weak demand coupled with the onset of the rainy season, companies continue to face significant inventory pressure.

3、The float glass market is expected to exhibit more flexible trading dynamics, continuing its weak and volatile performance.