Glass trend regional differentiation Inventory increase

This week, the overall trend of the glass spot market was weak. Production and sales of production companies were less than expected. Some manufacturers' inventory continued last week's weakness, and the chain continued to rise. The price was relatively flexible. From a regional point of view, the overall situation shows a pattern of north stability and south weakness. The production enterprises in the south are affected by the rainy season, and some manufacturers have loosened their regional prices for financial performance. At the same time, Huazhong medium-range surrounding areas have also been affected by a certain extent. In contrast, although the harvest in the northern region was not yet completed, the production and sales of production companies were generally better, and the increase in factory inventory was modest, which was lower than previously expected. However, some deep-processing enterprises are subject to the requirements of environmental protection supervision, and the operating rate has dropped slightly.

At present, the average price of white glass in the country is 1,500 yuan, up by -4 yuan from the previous week and up by 274 yuan from the same period last year. The utilization rate of float glass in the weekend was 72.22%; it was 0.28% higher than last week and 1.66% higher than last year. The production capacity was 93.44 million heavy containers, which was an increase of 3.6 million heavy containers from the previous week, an increase of 45.6 million heavy containers last year. The stock of the industry at the weekend was 33.51 million heavy containers, which was an increase of 150,000 heavy boxes from last week, an increase of 270,000 heavy containers last year. The number of days of inventory on weekends was 13.13 days, an increase of 0.01 days from the previous week and an increase of -0.79 days from the same period last year.

From January to May 2017, the total investment in real estate development in the country was 3759.5 billion yuan, an increase of 8.8% over the previous year. The construction area of real estate development companies was 6,71.38 million square meters, a year-on-year increase of 3.1%. The area of new housing starts was 65.79 million square meters, an increase of 9.5%, and the growth rate was down by 1.6 percentage points. The area of buildings completed was 33.911 million square meters, an increase of 5.9%, and the growth rate was down by 4.7 percentage points. Real estate development companies purchased land of 75.8 million square meters, an increase of 5.3% year-on-year. The sales area of commercial housing was 5,482 million square meters, an increase of 14.3% over the same period of last year, and the growth rate was down by 1.4% from January to April. At the end of May, the area of commercial housing for sale was 66.018 million square meters, a decrease of 14.52 million square meters from the end of April. In May, the real estate development sentiment index was 101.18, down 0.05 points from April.

From the regional perspective, price adjustments in southern China are relatively large, and the impact on central China has begun to show up. Shahe glass is out of the market with normal prices, while prices in the southwest region have been loosening. The price has been loosening in the early part of the week, and the overall increase this week has seen traders respond flatly.

In terms of production capacity, 600 tons of cold coal from Shanxi Lihu Jiaocheng No. 2 Line was repaired and refueled. At the end of the month, the production of the cold-repaired production line was 700 tons of the third-line of China Glass Suqian Plant and 700 tons of the second-line of Kunshan Taibo. No new production line planned for the ignition and expiring production line planned for this week. The trend of each region is as follows:

The overall trend of the spot market in East China this week was normal. Production and sales of production enterprises were basically normal, and the prices were slightly adjusted. Looking at the overall situation, the demand for end-market in eastern China is currently limited to a limited increase. Processing companies and traders are not able to purchase glass originals at a slower pace than expected. From the perspective of the operating practices of manufacturing companies, some listed companies have increased their inventory and repayment efforts slightly in order to increase their operating performance, and quotations have declined. At the same time, affected by the changes in marketing strategies of these companies, some of the surrounding manufacturers also have certain marketing actions. Caused traders and processing companies to perform relatively cautiously on the later market. Changes in the outbound conditions in Central China will also affect the supply and demand pattern of the East China spot market.

This week, the overall trend of the South China market was poor, and the speed of the production enterprises' shipments changed. The factory price adjustment exceeded the previous market expectations. The current production enterprises have the intention of increasing the number of warehouse shipments and returning funds, and the magnitude and speed of factory price adjustments do exceed the previous expectations. At the same time, the resumption of production of Zhongshan Yufeng's first line also has a certain influence on the market price trend in the later period. A 400-ton production line of Jiangmen Wal-Mart is also undergoing a cold-repair process, and it is expected that high-quality ultra-thin glass will be produced before the end of the year. This week, the market trend in central China was weaker than in the previous month, and market confidence was slightly insufficient.

This week, the overall trend of the North China market exceeded expectations, with limited reduction in the number of production companies out of the market, and a stable market price. Affected by the busy harvest in the northern region, the production speed of the production enterprises in the Shahe region has slightly decreased, but the margin is not large, and the balance between production and sales can basically be maintained, and the increased inventory of the manufacturers is limited. In order to boost the market sentiment, the prices of individual products from some manufacturers rose slightly, and the effect was general. Comprehensively looking at the impact of the northern farmers on the output of the Shahe region's production enterprises was lower than expected. The main reason is that the current production companies are generally less inventories, financial pressure is not, the other is the soda price rise, but also allows manufacturers to be quite willing to price. The production companies in the Beijing-Tianjin-Hebei region are generally out of storage, and the relocation of the 600-ton production line of Dezhou Jinghua is scheduled to ignite in September.

This week, the overall trend of the southwestern market became warmer. The production and sales of production companies were basically normal, and the overall price quotations rose. Traders responded with a flat response.

This week, the northeastern market was flat and the production companies were out of the market. The market quotations did not change much. Fuyao Shuangliao line 600 tons plan to ignite before September.

This week, the overall trend of the northwestern market remained stable, and the production enterprises were basically out of the market, and the market price did not change much.

Aftermarket overview:

According to statistics released by the National Bureau of Statistics, the total output of flat glass from January to May was about 340 million heavy boxes, which was a year-on-year increase of 6.4%. In May, the output of flat glass was approximately 73.06 million heavy boxes, a year-on-year increase of 8.9%. Looking at the overall current supply-side capacity and output increase, the pressure on the spot market price is obvious. In the short term, foreign trade export orders have increased slightly, and the increase in raw material costs has a certain supporting effect on the prices of production enterprises. At the same time, we have seen from the data such as the new start-up of real estate and the completion of the work, the magnitude and speed of the decline in the chain ratio are all obvious. Therefore, the number of downstream glass orders, as well as the market price support ability and trader mentality, etc., have yet to be examined.