Float glass, as a high-quality flat glass widely used in construction, automobiles, furniture and other fields, has always attracted much attention for its market fluctuations. In recent years, the float glass industry has experienced many challenges, from sluggish demand to price declines, from high inventory to shrinking profits, the entire industry seems to have fallen into a cold winter. However, in the midst of difficulties, the industry is also constantly exploring ways to break through in order to usher in a new turnaround.
1. Current status of the float glass market
(I) Price trend
In 2024, the price of float glass showed a narrow range of fluctuations. Driven by credit at the beginning of the month, expectations of supply-side reduction and sentiment, a small number of companies started a new round of inventory replenishment operations. Some companies took the opportunity to raise prices to test the market, but due to the lack of significant improvement in downstream processing orders and funds, most original glass companies kept prices stable and watched the market. Overall, the price fluctuations were not large, but market confidence was relatively insufficient.
(II) Profit performance
The profit performance of enterprises varied. The average weekly profit of float glass fueled by natural gas continued to be negative, while the profit of float glass fueled by coal-to-gas and petroleum coke increased and decreased. This shows that different companies have differences in cost control and market response, and also reflects the important impact of fuel costs on corporate profits.
(III) Supply situation
The supply side fluctuated at a high level. This week, one production line was shut down for cold repair, and the supply volume declined slightly. But in the long run, although some companies are willing to repair, the overall cold repair speed is slow, and the supply is still at a relatively high level.
(IV) Demand situation
Demand is weak. The number of days for orders for glass deep processing companies has decreased. Some deep processing of engineering orders has no intention of accepting orders due to low benefits. Home decoration orders are mostly scattered orders, and most of the export situation is the same as the previous period. This shows the shrinking market demand and the cautious attitude of downstream companies towards the market outlook.
(V) Inventory changes
The staged stocking of the middle and lower reaches has caused the inventory of the original film companies to decline. However, the staged stocking in some regions is nearing the end, and the subsequent digestion stage may lead to a differentiation in inventory trends.
