Glass futures prices weakened sharply after the Spring Festival, and rebounded slightly in the second half of the week. As of Friday's close, the main glass futures contract was reported at 1695 yuan / ton, down 7.12% weekly. The spot market rose slightly, and as of Friday, the average price of domestic float glass was 2,036 yuan/ton, up 13 yuan/ton from the first working day after the holiday.
From a fundamental point of view, after the Spring Festival, the two glass production lines were ignited, and the supply level increased slightly. This week, the operating rate of the industry was 85.1%, an increase of 0.28 percentage points week-on-week, and the daily melting volume in production was 172,300 tons, unchanged week-on-week. In the early stage, the ignition production line is expected to produce finished products last week, and the supply may further increase. After the holiday, a small number of downstream enterprises started construction, and the replenishment of the original film drove the transaction price at the beginning of the week higher. In the second half of the week, under the influence of factors such as rain and snow weather and cooling market sentiment, glass factories further accumulated warehouses and enterprise production and sales fell rapidly. As of February 22, the inventory of domestic glass enterprises was 54.255 million heavy boxes, an increase of 4.06% week-on-week. During the week, the production and sales in Shahe, Hubei and other regions fell to around 20%, and the rest of the regions rarely reached 100%.
At present, the proportion of resumption of work in the downstream deep processing industry is limited, and the industrial chain will be fully started after the fifteenth day of the first month, or it will drive the demand for glass replenishment, production and sales. Glass is also expected to enter the stage of both supply and demand, and the future price is expected to continue to rebound. The medium-term real estate gold, silver, and four peak seasons are still expected, and we will pay attention to the cash in the peak demand season and the capital situation of the industrial chain.