Since the festival, the price of glass futures has soared and fell, and the continuous decline for many consecutive days has exceeded market expectations.
Before the Spring Festival, some glass manufacturers closed their warehouses to raise prices. During the Spring Festival, the inventory of glass companies further increased significantly, exceeding market expectations. The data shows that as of January 28, the total inventory of production enterprises in key monitoring provinces was 63.08 million weight boxes, an increase of 10.05 million weight boxes, or 18.95%, from the inventory on January 19, and the inventory days were about 32.38 days, compared with January 19. Add 5.16 days.
In the general view of the industry, high inventory and weak reality are the main reasons for dragging down glass prices. After the festival, the downstream demand started late, the downstream resumption of work was average, glass production and sales weakened, and some traders cashed in profits at high points. According to statistics, the latest ending inventory of glass is 75.148 million heavy boxes, a year-on-year increase of 112.2%, which is at a high point in the past three years. Inventory remains high, which limits the height of glass prices.
With the resumption of work by terminal manufacturers after the fifteenth day of the first lunar month, the fundamentals in the process of fulfilling the demand for glass have improved. In particular, whether the current high inventory pattern can be reversed through the recovery of demand will receive more attention from the market. For the demand to be good, there is no way to falsify it. The glass factory is supported by last year's profit, and the superimposed cold repair cost is relatively high, and the willingness of the glass factory to cold repair is low. Although the market is generally optimistic about the completion of construction in the second quarter, and the completion and repair will drive the demand for glass to improve, it is still expected.
