The pressure on the supply side is slowly increasing and the support on the demand side is insufficient.

Recently, glass is in the off-season, inventory is slowly accumulating, demand-side support is insufficient and good news is lacking. On the

supply side,

as of July 5, 2023, there are 306 domestic glass production lines (204,630 tons/day) excluding zombie production lines, of which 242 are in production, 64 are cold repair and shutdown, the operating rate of float industry enterprises is 79.08%, and the capacity utilization rate is 81.15%. The glass supply pressure is slowly increased.

Demand:

In the near future, the overall production and sales of manufacturers are general, most of them are mainly accumulated inventory, and the market demand is difficult to improve in the short term. In addition to the current high temperature and rainy weather, most of the middle and lower reaches maintain a small amount of replenishment rhythm on demand, and continue to maintain a wait-and-see mentality. It is expected that the price of float glass will continue to decline in the short term, waiting for the arrival of the traditional peak season of glass in the third quarter, and the supply and demand may improve seasonally.

The market still has great expectations for policy adjustment. The completion data in May continued to rise. The cumulative area of completed real estate in January-May was 19.6% year-on-year, and the previous value was 18.8%. Glass is supported by rigid demand in the short term, and the market is relatively stable. However, according to the data of the National Bureau of Statistics, from January to May, the investment in real estate development dropped by 7.2%. At present, the completion of the project relies more on policy support, and the willingness of real estate enterprises to invest is still not obvious. If the late policy is not up to expectations, glass demand will be more severely hit, on the contrary, if the real estate policy and the investment situation of housing enterprises improve, glass market prices can be restored to a certain extent.

On the whole, the current glass is in the off-season, the demand side support is weak, the inventory accumulation pressure is high, and the glass disk is oscillating.