Though the spot market is oversupply and the glass futures appears an upward rend, it will not last long due to the heavy pressure.
Analysis from the demand-and-supply market, in 2012, the new added production lines is 18; the new added capacity is 77 million weight cases. The whole capacity of 2012 reaches 994 million including 182 million cold repair and shut down capacity. Besides, there are 250 million weight cases under construction. It is expected, 17 production lines will be put into operation, which will make the oversupply situation even worse. Recently, the sales-output ratios of float glass are respective 109 percent, 107 percent and 94 percent on September, October, and November of 2012 which presents downward trend. On inventory, there are 40 million weight cases on June and July of 2012, and after that it keeps on more than 320 million weight cases. We can see from it that the supply is over than demand.
Seeing from the season factor, at the beginning of New Year, the average price of glass will reduce. The north regions, the demand is almost on sluggish and the inventory is rising. Not only the north region, but for the whole nation’s demand keeps shrinking.
It is expected that the whole sale will reduce allowing the season, and the price will not rise in short term.
