[Market Analysis]
A see-saw in prices has been seen in Chinese market of original sheet of float glass: the Central China market is not doing well under the influence of Shahe market, with some prices down by 2/weight case. In the South China market, the prices continue to recover, with raises of 1-3/weight case from some manufacturers. The contrast between the persistent price reductions in North China market and the price raises in the South China market, alone with the relatively steady prices in East China market, contributes to the pattern "North Up, South Down, Central Stable". With regard to the spot market, there is not much room for continuing price droppings in North China. Currently, with the exception of Northeast, Northwest and North China markets, where the demands are depressed, the demands are acceptable in the overall markets. Last week, in terms of production lines, 39 product lines were under cold repair, and 27 were shut down, which contributed to the cold repair/shutdown ratio generally unchanged. The inventory increased to 27.57 million weight cases in late December, and is still on the raise.
[Operating Recommendations]
With the influence of price dropping in North China market, Central China spot market witnessed slight price reductions. Prices remained steady in the East China market and even increased in South China market. Both the spot and future prices of glass presented an all-time high, with the raising quotation breaking through the pressure level 1450. Recommendations: multiple holdings or partial stop-profit; short-term bear transaction; watch support level 1420 and pressure level 1470.
