Some production lines for float glass have been shut down.

Some production lines for float glass have been shut down.

Market price of float glass

Market Analysis of Float Glass

The domestic 5mm float glass market remained stable overall today. A production line at Hunan Yanxiang Xiang Industrial with a designed daily capacity of 1,000 tons ceased operations today, leading to a supply contraction that caused minor fluctuations in market sentiment; some companies in the Central China region plan to send letters proposing price increases tomorrow; other major regions continued to focus on maintaining stable prices and shipments. Currently, the float glass industry is generally operating at a loss, with market demand continuing to weaken due to sluggish real estate project completions. Although the industry has passively implemented production cuts and supply controls, the extent of supply reduction falls short of meeting the decline in demand, compounded by high inventory levels, leaving insufficient foundation for sustained price increases.

Index Analysis of Float Glass

According to calculations by Boduo Data, the float glass price index stood at 987.89 on July 15, down 0.25 points (−0.03%) from the previous working day.

Futures Updates

According to data from Bodo Data, the main glass futures contract FG2609 opened at 950 yuan/ton on July 15 and closed at 949 yuan/ton, recording a daily decline of 0.21%. The intraday price range was between 958 yuan/ton and 944 yuan/ton, with open interest standing at 1,966,511 lots and a daily increase of 10,036 lots.

Today, glass futures continued their bottoming-out trend. The year-on-year decline in real estate completed construction area, combined with the impact of the plum rain season and typhoons on end-user demand, has led most midstream and downstream players to maintain a demand-driven inventory replenishment strategy, making it difficult to reverse the weak market momentum. The current combination of high inventories and sluggish demand continues to limit price upside potential; however, losses in raw material production are providing support at the price floor, suggesting that glass futures prices are likely to remain in a weak consolidation range in the short term.

Future Market Forecast

In the short term, China's float glass market is expected to remain volatile and weak, with prices unlikely to show significant improvement. Companies are primarily focused on maintaining production-sales balance and reducing inventory levels. Going forward, close attention should be paid to the pace of downstream demand recovery and the practical implementation of industry capacity adjustments.