Insufficient supply of the hottest glass industry

2022-08-04
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Insufficient supply in the glass industry has led to a rise in prices

the current rise in glass prices is centered on the rapid recovery of new real estate construction data. About 15% of domestic flat glass is exported and 85% is sold domestically, 80% of which is used in the construction industry. With the continuous increase of new construction area of real estate, the demand for glass is expected to continue; The export, which accounts for 15% of the demand, is still at the bottom, and is expected to improve gradually with the recovery of the global economy; The demand for automobiles is also expected to maintain a stable growth situation, so the demand of the glass industry is basically determined to gradually improve

in terms of supply, 47 float glass production lines were put into operation successively in 2008, while less than 10 resumed production lines and 7 new production lines were put into operation this year, resulting in tight supply. Even if the production lines that have stopped production step up to resume production, it will take 3-4 months to prepare. Therefore, it is expected that the glass supply will not increase until the fourth quarter. Recently, glass prices have rebounded strongly. The price of 5mm glass in Shanghai rose by more than 20% in a single month in July, and from the bottom of glass prices in March to the end of July, it rose by more than 80%; The price of 8mm glass in Guangzhou rose by 8% in July. From the bottom of glass price in March to July, the price rose by more than 60%. Insufficient supply is the fundamental reason for the soaring price of flat glass

in June, the new construction area of real estate increased by 12% year on year, and the new construction hit the bottom and rebounded; The real estate investment increased by 18% year-on-year in a single month, and the export of flat glass increased by 11% month on month. The industry is expected to usher in 5-8 quarters. The goal of LANXESS is to commercialize the production of ethylene propylene rubber (EPDM) from bio ethylene by the end of 2011. As more than 70% of the flat glass is used in the construction field and the installation stage is in the late stage of construction, the substantial increase in the completed area of commercial housing will strongly stimulate the demand for glass. It is expected that there may be a serious shortage of glass in the third quarter, and the price will continue to rise and break through the price peak in 2007. At present, the price of float glass is close to the highest level in 2008. As the prices of the main raw fuels - heavy oil and soda ash are still relatively low, the gross profit margin of the dominant enterprises of float glass is as high as 40%

according to the price data of float glass, the price of float glass began to rebound sharply in March this year. At present, it has approached or reached the high level in 2008. The price in most regions is 80~85 yuan/heavy container (including tax), and the price in Guangdong has reached 90 yuan/heavy container (including tax). From the industry profit data, the cost-benefit industry of flat glass to improve water recycling has fully recovered in the second quarter. From March to may, the flat glass industry has turned from a large loss to a profit. From the perspective of the second half of the year, with the improvement of the industry's profits, 43 production lines that have stopped production may be partially restored to form new supply, which may make the industry's prosperity consolidated, but will not change the upward trend of the industry's prosperity. Reserved printer interface investors pay appropriate attention to relevant leading listed companies in the glass industry

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